Myanmar lifts restriction on imports of various cargo vehicles and is gradually opening up

In 2010, China's auto exports to Myanmar will usher in a new situation.

On January 13, 2010, according to Myanmar media reports, some car importers stated that the Myanmar government has lifted restrictions on the import of various cargo vehicles. Since January 1, 2010, importers have been allowed to use foreign exchange to freely apply for imports of various loads. Cars. This is another opening measure of the Myanmar government since the lifting of restrictions on diesel imports from private companies on November 1, 2009. In addition to trucks, Myanmar also cancelled the original regulations for importing buses and tourist buses with the import certification of relevant departments. Importers can freely apply for imports.

It is reported that the Myanmar automobile market started late and the starting point is very low. The demand for automobiles mainly depends on imports. However, due to local policy restrictions, the number of Chinese auto exports to Myanmar has been low.

The market is gradually opening up

The Government of Myanmar to lift car import restrictions, what does this mean auto exports to China? Wu Kaide, chief of project department of Guilin Daewoo Marketing Department, believes that loosening of policies is expected to drive demand in Myanmar's auto market. “According to previous requirements, at the beginning of each year, auto import companies must report import quantities to the competent authorities, and then the government will distribute import quotas to enterprises. The enterprises that obtain quotas usually have a good relationship with the government. Now that the import restrictions are lifted, it means that other Companies can also apply for car imports."

Not only that, in 2010, the Myanmar government's initiative to open up the automotive market was frequently released. According to the Xinhua News Agency reported on January 5, Myanmar has established a new standard for imported cars. Starting from 2010, the models of cars imported from Myanmar must not be models that were produced prior to 2003. Among them, imported medium-sized passenger cars, minibuses, etc. are limited to 2005 and After the production of products, imported trucks and buses were limited to products produced in 2003 and thereafter. In addition, the new policy also stipulates that, according to the traffic conditions in Myanmar, the right rudder vehicle imports are restricted.

Commercial car news reporters learned that due to the good relationship between Myanmar and Japan, Myanmar’s imported cars are mostly dominated by Japanese used cars. Many buses in the country are converted from used trucks or three-wheeled cars, and they are comfortable and safe. And environmental protection are very poor.

Wu Kaide said: "As the economy develops, the Myanmar government hopes to improve the condition of the vehicles through the renewal of automobiles. At present, Myanmar does not issue regulations on vehicle emissions and service life."

The Burmese government's ordering vehicles from Guilin Daewoo in 2009 illustrates this point. “In the order of 30 passenger cars, the client actively asked for 20 passenger vehicles to be equipped with Korean Daewoo imported engines and equipped with airbag suspension. According to the local road conditions in Myanmar, we recommend the use of ordinary steel plate suspension, but they actively request the use of airbags. Suspending: Recently, the Myanmar government has tended to have a high profile in the procurement of vehicles, hoping to improve the image of the government and the quality of vehicles through these products.The latest policy is to limit the import of Right Rud Motor Cars, and the situation of mixed Rudong and Rudong vehicles will improve afterwards. "Wu Kaide said.

According to statistics, there are currently 2 million motor vehicles in Myanmar, including more than 1.615 million motorcycles, 242,000 small cars, 59,000 trucks, and 19,000 buses. Motorcycles still occupy an important position in transportation in Myanmar. With the development of the economy and the improvement of traffic conditions, Myanmar’s demand for automobiles will gradually increase, and policy adjustments also create conditions for the opening of the market.

Corporate cautious optimism

However, how much is the stimulating effect of policy adjustment on the market? Chinese companies are cautiously optimistic about this. "The government of Myanmar can't believe everything and can only believe half of it," said Mr. Zhang, the sales manager of the Jianghuai Commercial Vehicle Company in charge of the Myanmar market. “Not that we do not want to believe in the Myanmar government, but the order of the Myanmar government is often changed. The Myanmar government has promised many policies verbally, but it is very difficult to implement it, and we have not yet received feedback from customers.”

Not only is the policy difficult to implement, the current complex government system in Myanmar has also caused a lot of trouble in exporting automobiles. “Even if it does not restrict import models and import entities, the Myanmar government may not approve L/Cs for local importers. In Myanmar, foreign exchange reserves are small and foreign exchange is regulated. There is always a government selling car. In addition, the management of Myanmar’s imported cars is under the jurisdiction of the Second Ministry of Industry. To apply for a letter of credit, the six ministers of the department must sign at the same time, and in order to obtain these signatures, local importers need to make good use of government departments and other people. As Myanmar has long been governed by the military government, as the saying goes: Iron is being used to fight sailors. Leaders of government departments are changing every year almost every year. The importer's application for import qualifications in the same year must be re-applied in the next year, and they must be re-applied, usually applying for credit. The permit will take 2 months," said Mr. Zhang.

Wu also said: "Myanmar has been subject to sanctions from the United States. In the settlement of international trade, euro settlement is generally adopted. However, due to the lack of economic strength in this country, other countries' banks are afraid to accept the letter of credit issued by Myanmar." In the year, Guilin Daewoo's "Sunshine Beauty" GDW6119H and "Happy Star" GDW6840K were exported to Myanmar, which was settled by a Singaporean company using U.S. dollars, mainly to avoid payment risks. “The company responsible for the import of these vehicles is a large industrial group in Myanmar. It maintains good relations with the government. Without government support, general enterprises cannot obtain import quotas and foreign exchange.”

Good prospects for automotive assembly

On November 17, 2009, Myanmar's First Investment Company (FMI) announced that Suzuki Motors, which has an important position in the Myanmar market, has stopped assembling Suzuki Motors since the end of the fiscal year 2008-2009. As the Myanmar Suzuki Motor Joint Venture Company approved by the Myanmar Investment Commission has reached the end of its 10-year term, production is suspended and the 5% stake held by Myanmar is surrendered to Suzuki Motors Japan. Whether the plant can resume production is still unknown.

Ten years ago, Suzuki Motors of Japan and the Ministry of Industry of Myanmar established a joint venture to start assembling Suzuki cars and motorcycles in Myanmar. Myanmar Suzuki Automobile Co., Ltd. will assemble and manufacture cars according to the approved quota within the validity period. From fiscal year 2008 to fiscal year 2009, a total of assembly production indicators were obtained: 1,200 Suzuki R four-wheeled military trucks and 7,800 Suzuki Viva motorcycles for the Suzuki Wagon R+ and Carry Truck series. .

The suspension of production of Suzuki Motors allowed more automakers to see the business opportunities in the Myanmar market. It is reported that Jianghuai Automobile set up a light truck assembly plant in Yangon, Myanmar at the end of 2008, and it officially began assembly in 2009 with an annual production capacity of 1,500 to 2,000 vehicles. In 2009, the Ministry of Industry of Myanmar stated that Tata Motors India is planning to establish a factory in Maguire in cooperation with the Ministry of Industry, which will mainly assemble heavy trucks. Wu Kaide stated that Guilin Daewoo is also discussing with the Myanmar government about establishing an assembly plant.

However, due to the difficulty in importing components, the actual output of the JAC light truck assembly plant is only 500 vehicles. Not only Chinese companies, Japanese companies also face this problem. Mitsubishi Motors has established an assembly plant jointly with Myanmar's Ministry of Industry in 1998. Since then, it has produced only 471 cars per year. The plant's designed capacity is an annual output of 2,000 vehicles. It is understood that one of the reasons for the low output is the difficulty in applying for approval of imported parts. According to the company’s sales manager, Mitsubishi vehicles sell well in Myanmar and are now in short supply. If the company can produce at full capacity, the annual output is expected to reach 5,000.

Industry insiders analyzed that if Myanmar’s policy is truly liberalized, the future prospects of the auto assembly industry are promising, but the premise is how the policy is implemented. According to sources, the Myanmar government is gradually liberalizing its restrictions on automobile production and has allowed a small number of vehicles to be assembled. The models that have been approved for production currently include various light trucks, 10 to 12 tons of 10 to 12 rounds of medium- and heavy-duty trucks. Wait.

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