International car companies shut down Yangon showrooms

A junta ban on the import of all cars except for electric vehicles, or EVs, has resulted in a shortage of automotives nationwide and heavy losses for the industry, apparent in the recent shutdown of car showrooms in Yangon. Importing both used and new private and commercial petrol-powered vehicles was banned by the military after the February 2021 coup, essentially ending the car trade, according to an official from the Myanmar Automobile Manufacturers and Distributors Association (MAMDA). The move was widely seen as an attempt by the military to control the flow of foreign currency into the country. The military also halted the private import of diesel and petrol in October 2021. Only the import of electric vehicles, or EVs, is permitted under the junta, and can be done tax-free. The cars, which are significantly more expensive than traditional gas-powered vehicles, have not taken hold in Myanmar, where a stable supply of electricity is not guaranteed. Still, EVs are regularly promoted in military-controlled media by junta leader Min Aung Hlaing, who aspires to manufacture them domestically. “Because of the import ban, people are just selling used cars around the country. Those who don’t want a used car have no other option but to use the EVs,” a broker from Yangon said. “Some companies are waiting for the ban [on fossil fuel cars] to be lifted while some changed careers or ceased operations, but none have shut down operations all of a sudden,” the MAMDA official added. He explained that many companies were having difficulties paying rent on their showrooms in Yangon, and had been opting to close them. Some had turned to importing EV parts, then reassembling and selling them as an alternative to their earlier business models. Yet dealing in these parts would not be enough to keep companies in operation in Myanmar over the long term, the official said. Before the coup, there were some 30 international vehicle brands sold in Myanmar, many of which were still providing maintenance services for petrol-powered cars they had stocked and sold while waiting for the import ban to be lifted, an automotive dealer in Yangon explained. “We used to be able to import between 100 and 200 vehicles per month but so many brands are gone now—maybe 80 percent, and the remaining 20 have to work in collaboration with other businesses,” said a former salesperson for Mitsubishi. Yoma Motors, under Yoma Strategic Holdings, headed by business tycoon Serge Pun—also known as Thein Wai—had collaborated with Mitsubishi until the Japanese automotive company reportedly sold its shares back to Yoma. Yoma Motors is also the distributor for Volkswagen and Ducati vehicles, and has stated that they would combine the automotive brands to which they are linked under one sales umbrella, given the current economic conditions. The company also noted that it would move its Mitsubishi showroom in central Yangon to South Okkalapa Township, next to its Volkswagen showroom.

International car companies shut down Yangon showrooms

A junta ban on all car imports except for electric vehicles has left Myanmar with an automotive shortage and a shrinking industry

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