Myanmar’s Supervisory Committee for Motor Vehicles Import outlined sthe new auto import policy on October 26. But the announcement did not improve confidence in the auto market.

The government lays out the vehicle import policy every year. This year, there was not much surprise in what the new policy would mean. Car dealers said they had prepared for the measure prior to the policy release.

Last year, the import policy sent shockwaves in the automotive market when the authorities said in October 2017 that the majority of the cars imported must be left-hand drive. This was controversial for consumers as many prefer using second-hand Japanese right-hand drive cars. This, however, has a rationale as there is a genuine concern about road safety.

Consumers had many questions such as which brands they should choose for left-hand drive and are also worried about the quality of vehicles.

Since U Thein Sein’s tenure, Nay Pyi Taw is keen to replace older cars with new ones. Importers last year were worried that they would not be able to import right-hand drive vehicles anymore, and hence stockpiled as many as possible.

Right-hand drive cars experienced a price increase. But in the long run, car brokers cannot raise the price of those secondhand cars, so there would be a big problem.

Buyers are used to comparing brand new cars produced under the “semi-knocked-down” system (SKD)in Myanmar like Japanese Suzuki, and Nissan and used car prices. Up until now, Suzuki has been the best seller in the market.

“The new policy announced this year is not too special and nobody wants to import cars from other countries. If they do import, they will lose their money. It is right that the people favour the Japanese cars but no more,” said Sakura Car Sales Centre director U Aung Naing Tun.

“Although Suzuki is assembled in Myanmar, its quality is worth buying. When compared with Toyota and Nissan, Suzuki is not too expensive. And the government allows Yangon licences to be given to cars produced with the SKD system. That is the main point buyers to take into account when they purchase cars,” said U Aung Naing Htun.

‘Starting this year, the policy has changed and only left-hand drive cars can be imported’ – U Soe Tun, Farmer Auto CEO

Since the 2018 policy, the government set the regulation that most of the cars must be left-hand drive and that requirement will remain in place next year.

“In my experience, very few people import cars. Car sales centres rarely import cars. In the past, people imported right-hand drive cars. But starting from this year, the policy has changed and left-hand drive cars must be imported.

“Among new cars, those produced  under SKD will dominate the market,” said CEO U Soe Tun of Farmer Auto.

The Yangon Regional Government stopped issuing Yangon licences over the last two years.

Although Suzuki cars obtain Yangon licences, the price is between K25 million and K300 million, which some people can’t afford. Hence a prefer ence for second-hand cars.

“The Toyota Vita and Honda Fit, priced at K13 million to K14 million, are being sold. But their numbers are low. Many buyers think the brand is less important as long as the car is fine [quality-wise],” said a car broker.

“I think more SKD brands will come to Myanmar and we just need to wait and see what brands will become popular and their prices. Once people can buy SKD cars system at a reasonable price, they will be less interested to import in the future,” said managing director U Min Min Maung from the Wun Yan Kha Car Sales Centre.

According  to the announcement, importers must import 2016-19 left-hand drive (including under 1300cc passenger vehicles), 2015-19 left hand drive trucks, 2015-19 left-hand drive mini buses, city buses and express buses.

Excavators, bulldozers, wheel loaders and other heavy machinery must be less than 15 years old and need to be approved before import and purchase.

Source: https://www.mmtimes.com/news/only-left-hand-drive-allowed-import-2019-govt.html