Myanmar Car Importers Irked By Government Inaction

Vehicle importers in Myanmar say they are struggling to survive because of the lack of a clear, comprehensive government auto policy.

Myanmar Automobile Manufacturers and Distributors Assn. President Soe Tun tells the Myanmar Eleven news group importers are waiting for a policy and the future does not look bright unless it is announced soon.

“Every showroom is struggling to survive because sales have dropped sharply over the past few months,” Soe Tun says. “Now it is hard for most of the showrooms to meet half of the sales (they posted) last year.”

Only 150 of the more than 200 auto showrooms in Myanmar, formerly called Burma, are active.

Soe Tun, also CEO of Farmer Auto Showroom, says sales at his business are more than 50% lower than year-ago. Over the past four years, he has sold more than 10,000 cars.

The newspaper says the government is reviewing the policy after complaints that the lifting of an import ban in 2010 worsened traffic congestion in Yangon.

The Commerce Ministry has called for a meeting with government agencies and the private sector to review a draft policy with four key criteria: a market environment that generates a certain volume of new-car sales, favorable access to parts suppliers, incentives to build assembly plants and a system that allows the government to administer auto policy.

Myanmar Eleven says the policy also aims to establish vehicle standards, introduce a homologation system, strengthen the car-registration system, ensure fair taxation on car sales, revise the generalized system of preferences-based customs duties, strengthen car inspections, deregulate foreign direct investment in the automotive business, ensure incentives for domestic-car production and sales of designated new-car models and establish industry infrastructure.

New-vehicle imports have been allowed since 2014 and more than 5,000 units were imported last year. But about 2,000 remain unsold after the Yangon regional government stopped issuing parking permits, a must for new-car buyers.

The city also bans new-car imports, which the Yangon region transport authority says could last until year’s end. The Authorized Automobile Distributors Assn. an alliance of 16 international auto brands, tells Myanmar Eleven it is seeking a review of the ban.

Commerce Ministry Assistant Secretary Khin Maung Lwin says the aim is to have a comprehensive automobile policy that will address importers’ concerns.

“We are negotiating with all the stakeholders to find the best solution,” he says. “However, Myanmar is yet to learn from other countries on import rules and regulations. More discussions with Yangon regional government are also necessary.”