Myanmar car owners to be allowed to buy EV imports in exchange for old vehicles

Myanmar’s junta-controlled commerce ministry announced a plan last week to allow car owners in the country to swap their old vehicles for imported electric vehicles. In a statement released on May 28, the ministry said that even vehicles over 20 years old would qualify for an electric vehicle (EV) import permit, to be issued upon presentation of a deregistration certificate from the Road Transport Administration Department. It also claimed that the junta’s central bank will supply the required foreign currency at an “appropriate” exchange rate. The initiative reflects the junta’s push to prioritise EV imports amid rapidly rising fuel prices. However, a Yangon-based car dealer, speaking anonymously, said that it made little sense if the plan is to simply scrap older vehicles once they’ve been handed over. “Even in wealthier economies, like Thailand or Malaysia, many people still drive cars that are more than 20 years old,” he said, noting that such vehicles are worth even more in Myanmar due to the shortage of cars in the country. “If surrendered vehicles are simply scrapped, it will reduce the number of cars available, and push prices even higher,” he said. One auto industry insider noted that the proposed scheme was unlikely to benefit most ordinary consumers. According to the ministry’s announcement, owners would have to surrender vehicles worth at least 30 million kyat (US$7,500) to qualify for an EV import permit. While many older vehicles can fetch that much, most people would see no real advantage in giving them up just to get the permit, he said. “There is, however, one exception: for those looking to import ultra-expensive luxury cars that are typically restricted, this could serve as a loophole,” he told Myanmar Now. Car dealers say the new policy also brings uncertainty to the market, raising concerns that it will be a drag on business. “When a policy shock like this occurs and conditions remain volatile, no one is willing to trade,” said one dealer. “We ourselves will refrain from making any purchases for now.” The move by the current regime is reminiscent of one taken by the quasi-civilian administration of former President Thein Sein some 15 years ago. At the time, old cars that were given up by their owners in exchange for import permits were sent to smelting plants. Under the new scheme, it is unclear if owners will be able to import new vehicles directly, or if they will have to purchase them through domestic distributors. There are around 120 companies involved in the import and distribution of EVs in Myanmar—many of them linked to the military. The regime has heavily restricted vehicle imports since seizing power more than five years ago. However, with the US-Israeli war on Iran continuing to drive up global oil prices, it appears to be hoping that EV imports will help reduce reliance on imported energy, which accounts for 90 percent of Myanmar’s supply. In March, soon after the war started, the junta introduced alternate-day driving, allowing vehicles to operate only every other day, depending on their registration numbers. EVs were exempted from the new rule. This alone was enough to cause a sharp spike in EV prices, with some now costing hundreds of millions of kyat, according to dealers. Meanwhile, due to the continuing shortage of cars stemming from import restrictions, many older vehicles remain on the road, especially in rural areas. Often unregistered, they could soon become increasingly rare, as the regime is reportedly preparing a push to issue Radio Frequency Identification, or RFID, tags to make them easier to scan, track, and seize.

Myanmar car owners to be allowed to buy EV imports in exchange for old vehicles

The move comes as the regime pushes to reduce reliance on imported oil, which makes up 90 percent of Myanmar’s supply

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