2011 is the beginning of a new era in all sectors of Myanmar, such as politics, economy, etc. Among these changes, the old car replacement plan was included and the owners of old cars were permitted to import newer model cars for the exchange of their old cars. Therefore, the demands have been started to increase in the automotive market and many automobile manufacturers and dealers have tried to take market share in the automotive market of Myanmar. In 2012, the government of Myanmar has eased the restriction that all individual who has a foreign currency account at Myanmar Foreign Trade Bank and Myanmar Economic Bank are permitted to import the car. This fact made the automotive market more active and competitive. In the meanwhile, the government also promulgated the new Foreign Investment Law and Foreign Investment Rules that is the incentive for foreign investors to make an investment in Myanmar. This factor also leads the development of automotive industry in Myanmar.
Since then, many car showrooms, dealers and service centres have been mushrooming in the big cities in Myanmar, especially Yangon and Mandalay. Now, over 90 car show rooms have been officially permitted to be opened in Myanmar and many car showrooms are branded car showrooms where only their branded cars are displayed and sold. Toyota car showroom, Suzuki car showroom, Hyundai car showroom, KIA car showroom, Mercedes-Benz car showroom, Nissan car showroom, BMW car showroom, Ford car showroom display and sell their respective branded cars and some showrooms such as Sakura, Farmer Auto, JAM, SSS, DFM, etc display and sell a wide range of branded cars.
In the automotive market in Myanmar, there are used car market and brand new car market as two types of market in the other country. There has been an increased demand for Japan made used cars and according to the survey, Toyota was the most popular car brand and gained the biggest market share in the automotive industry in Myanmar in 2014. In 2014, Toyota opened its new brand car showroom in Yangon. According to the automotive market condition in 2014, Toyota led the automotive market in Myanmar and other Japanese brands, Honda and Nissan ranked the second and third places and Korean brands, such KIA and Hyundai were followed and European car brands such as Ford, Mercedes Benz, BMW, etc ranked the fifth place.
A person who wishes to open car showroom in Myanmar must pay the guarantee fee MMK 3 million and USD 100,000 to the Ministry of Commerce and MMK 3 million is refunded after obtaining the license. In 2015, it is estimated that the car importation rate will decline because of the restriction of car permit, the term of permit, 6 point preconditions even though the car dealers are able to import cars with the normal rate on the consignment basis. Moreover, in applying for car permit in 2015, a recommendation for car parking space of Yangon Region Government must also be submitted. Therefore, many market watchers predict that the automotive market will be more competitive because demand will decline and supply will increase.
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