Both in 2008 and in 2012, the number of total registered vehicles grew substantially, as the number of registered motorcycles increased by over 100% (2008) and 60% (2012). The expansion was seen in every province, owing to introduction of new motorcycle models and increased farm income, and most importantly, encouraged by Myanmar authority’s temporary permission of registering unlicensed motorcycles in circulation into legal fold in both years and 5% extremely low import tariff on motorcycles in practice.

The increment of number of passenger cars has shown up since 2011, after Myanmar government launched the old car substitution plan. Equally, the growth is due to the government’s decision to open up the market by granting private companies with access to import cars from overseas, starting Jan 1, 2010. The above rule on permission for car import has again been changed since July 2012. All Burmese citizens are now allowed to import cars, provided the car models are those made after 2007.

All Registered Vehicles in Myanmar (‘000)

Even after the import liberalization, which cut down the car purchase price by more than half, majority of the people in Myanmar rely on cheaper alternatives which are motorcycles. Motorcycles are mainly used in other cities and towns due to the uneven terrain and cheaper costs. In Yangon, however, the main form of transport is car, while motorcycles remain banned.

Registered Vehicles by State/Region, June 2016

Myanmar Car Sales by Country of Origin, 2014

Imported Japanese cars are mostly second-hand, and cost almost twice that of Chinese cars but are still much cheaper than US or European cars.

Toyota brand cars are popular in Myanmar because of their durability and reliable quality perception, suitable for poor road infrastructure in Myanmar.

Myanmar Car Sales by Brand, 2014

According to Myanmar Port Authority, total number of cars imported from FY 2011-2012 until FY 2016 is more than 670,000 numbers on board of 700 ships. However, with car imports directly contributing to congestion in Yangon in recent years, the government has tightened its control over car imports and maintained high taxes based on engine size.

In 2015, the government announced that ‘parking permits’ would be required to ensure that all imported used cars had somewhere to be kept. These permits were soon trading on the black market for around Ks.800,000 each. There appears to be little consistency in the rules and in May 2016, the new government stopped issuing these permits all together, effectively stalling all used car imports.

Estimated Split of New/Used Car Imports (2015)

Number of Imported Used Car

Solidiance is a corporate strategy advisory firm advising CEOs on make-or-break deals and defining market-specific business models for Fortune 500 companies and Asian conglomerates looking to leverage Myanmar's unprecedented growth. Our Myanmar experience includes market entry and growth strategy projects across the automotive industry.

Our full-time in house team of local Myanmar consultants has extensive experience and expertise in advising clients across the passenger cars, commercial vehicles, automotive aftermarket, automotive and commercial lubricants segments, equipped with the most up to date market insights and an extensive network of relevant automotive sector contacts on the ground. Recent projects include Myanmar market entry strategy and distribution partner search for lubricants across passenger cars, motorcycles and commercial vehicles for a Fortune 500 energy firm and developing a 5 year wholesale strategy for the largest global automotive OEM across the planned, unplanned and collision parts market for passenger cars (Sedans and SUVs), pick up trucks, MPV and vans. From estimates for Myanmar units in operation (UIO), regional share, used cars and source of imports, key supply channels and margins from importers to wholesalers to retailers and dealers, aftermarket landscape and key purchasing criteria, threat from non genuine and fake parts to automotive policies, tax and customs on automotive imports and Myanmar automotive insurance landscape, Solidiance offers flexible customized solutions to cater to the specific needs of our automotive clients.

Solidiance has been working on automotive projects since we established our presence in Myanmar in 2011. Our Yangon office is part of a network that extends across Asia with offices in China, India, Singapore, Thailand, Vietnam, Indonesia, Malaysia, Philippines, UAE and Lebanon.

For more information, contact us at info@solidiance.com