MYANMAR ELECTRIC CAR MARKET

KEY FINDINGS

1. The electric vehicle (EV) market in Myanmar is still in its early stages of development, making concrete data and analysis limited.
2. Myanmar's recent political and economic turbulence has hampered progress in various sectors, including the EV market.
3. Current barriers include limited charging infrastructure, underdeveloped electricity grids, and a lack of skilled personnel for EV maintenance.
4. As gasoline prices continue to climb globally, Myanmar is no exception. This makes electric vehicles, with their significantly lower operating costs, a more attractive option for cost-conscious consumers.
5. The Myanmar government has expressed interest in developing the EV industry and has implemented some supportive policies, such as reduced import duties on EVs and plans for building charging infrastructure.
6. One of the biggest obstacles to widespread EV adoption in Myanmar is the lack of charging stations. Currently, there are only a handful of charging stations scattered across the country, mostly concentrated in Yangon, the largest city. 
7. While EVs boast lower operating costs in the long run, their initial purchase price is significantly higher than traditional gasoline-powered vehicles. 
8. Myanmar's recent political and economic instability has created uncertainty for investors and businesses alike. 
9. The government has committed to building more charging stations across the country, and private companies are also investing in this sector. 
10. As EV technology matures and production scales up, the cost of EVs is expected to decline. This will make them more accessible to a wider range of consumers in Myanmar.
11. Myanmar has abundant renewable energy resources like solar and hydropower. Integrating these resources with the EV charging infrastructure can create a sustainable and environmentally friendly transportation system.
12. Companies can invest in setting up charging stations in strategic locations like cities, highways, and tourist destinations.
13. Invest in companies developing innovative charging solutions like fast chargers, wireless charging, and solar-powered charging stations.
14. As the market matures, opportunities will arise for establishing local production facilities for electric vehicles, two-wheelers, and three-wheelers.

MYANMAR ELECTRIC CAR MARKET OVERVIEW

The Myanmar electric car market is akin to a youthful explorer on a dusty path—brimming with potential yet encountering obstacles in unexplored terrain. While it may not be surpassing established markets just yet, it's gearing up for an exhilarating journey.

The current Achilles' heel of the market lies in the challenge of locating charging stations, akin to searching for an oasis in a desert. However, the government is channelling resources into building a network, and private enterprises are catching on, signalling an imminent rapid expansion in the years ahead.

Although electric vehicles (EVs) promise long-term cost savings, the initial price tag can be a bit staggering. Fortunately, advancements in battery technology and economies of scale are poised to lower costs. Additionally, government incentives could serve as an attractive sweetener for potential buyers.

Financing EVs remains a challenge as banks maintain a cautious stance. However, with the maturation of the market, inventive financing models such as micro-loans and pay-per-use plans are emerging, enhancing accessibility to EVs.

The Myanmar Electric Car market's true gold mine lies in investing in charging infrastructure. Entrepreneurs can set up charging stations, develop cutting-edge charging technologies, and capitalize on the burgeoning demand by becoming pioneers in EV sales in Myanmar. Collaboration with established brands, establishment of dealerships, and tapping into the growing demand are key strategies for success.

Furthermore, powering EVs with clean, green energy presents a significant opportunity. Investment in solar and wind farms, the development of energy storage solutions, and the creation of a sustainable transportation ecosystem are avenues for substantial profits.

INTRODUCTION TO MYANMAR ELECTRIC CAR MARKET

Myanmar has started producing and selling new-energy vehicles, including hybrid electric automobiles, to cut carbon emissions and safeguard the environment. Following the country's economic and political reforms, demand in Myanmar is predicted to skyrocket.

MYANMAR ELECTRIC CAR MARKET SIZE AND FORECAST

The Myanmar Electric Car Market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.

MYANMAR ELECTRIC CAR MARKET SEGMENTATION

Myanmar Electric Car Market By Geographic Segmentation

• Urban Areas
• Rural Areas

Myanmar Electric Car Market By Demographic Segmentation

• Age
• Income Levels
• Occupation

Myanmar Electric Car Market By Technographic Segmentation

• Tech Adoption
• Connectivity Preferences

EMERGING TREND IN THE MYANMAR ELECTRIC CAR MARKET

The primary obstacle to widespread electric vehicle (EV) adoption is rapidly diminishing, thanks to concerted efforts by the government. Resources are being allocated to establish a comprehensive network of charging stations across the nation, with a focus on major cities and highways. Private enterprises are also actively participating, strategically placing stations in locations such as shopping malls and gas stations.

Although electric vehicles still come with a substantial price tag, significant progress is being made. Advances in battery technology are driving down costs, and economies of scale are starting to take effect. Government incentives, including tax breaks and reduced import duties, are further enhancing the attractiveness of EVs. Anticipate the introduction of more affordable EV options in the market soon.

Financial barriers are easing as well, with banks embracing EVs and introducing innovative financing solutions such as microloans, pay-per-use models, and battery leasing. This shift will broaden access to EVs, contributing to accelerated growth in the Myanmar electric car market.

Myanmar is moving beyond reliance on imports, with a growing emphasis on local production initiatives. Plans are underway for the assembly and even manufacturing of EVs within the country. This not only promises job creation and economic stimulation but also makes EVs more accessible and affordable for the local population.

Benefiting from abundant renewable energy resources like solar and hydropower, Myanmar aims to integrate these sources into the EV charging infrastructure. This move will establish a sustainable transportation system, reducing dependence on fossil fuels.

Drawing inspiration from neighbouring Southeast Asian countries like Thailand and Vietnam, where EV adoption is already significant, Myanmar is leveraging regional collaboration. By facilitating technology transfer, knowledge sharing, and joint infrastructure development, Myanmar seeks to expedite its journey towards widespread EV adoption.

MYANMAR ELECTRIC CAR MARKET NEW PRODUCT LAUNCH

The KSDV1-NE2 Model, a Chinese high-tech electric automobile, was erected in the Thadukan industrial zone, Shwepyitha Township, Yangon Region, as a symbol of Myanmar-China friendship.

Those autos will be sold in Yangon. The first electric automobiles manufactured in Myanmar with technology from the People’s Republic of China are intended to be accessible to Myanmar citizens. An electric car’s battery can be simply recharged wherever electricity is available.

A fully automated system could charge the car battery. It also has the potential to lower the cost of fuel oil. No sound or smoke is coming from the vehicle. As a result, the environment has been conserved.

On a single charge, the KSDV1-NE2 electric car can travel up to 800 kilometres. It has a top speed of 80 kilometres per hour and can seat up to five people.

The car is equipped with an electronic charger engine machine with a capacity of 796 CC, which may be utilised to swiftly replenish the battery using gasoline while on the road. A Yangon licence number is assigned to these hybrid electric vehicles (KSDV1-NE2).

Nissan Motor Co., Ltd. has announced that, in collaboration with Tan Chong Motor Group, it will begin building new automobiles in Myanmar this year. Plans for a new manufacturing facility in the Bago region of the country are on track.

Nissan was the first company to introduce a zero-emission vehicle, the Nissan LEAF, and it continues to be a leader in this field. The LEAF, the world’s first mass-market pure-electric vehicle, is now one of the best-selling EVs ever.

MYANMAR ELECTRIC CAR MARKET NEW TECHNOLOGY

Myanmar’s car market is set to take a new direction. Myanmar, long renowned as a used-car haven, is currently undergoing a significant transition in its automotive sector as the government works to promote domestic manufacture by limiting the import of used cars.

The largest vehicle importer in Southeast Asia, Sakura Trade Centre, inaugurated a Suzuki showroom in the heart of Yangon on December 24.

The dealership is Sakura’s first for brand-new automobiles; from its founding in 1993, the business has concentrated on used cars. At its height, Sakura was bringing in 10,000 secondhand automobiles from Japan annually.

However, according to Sakura’s president Htay Aung, the firm can no longer anticipate development in the used car market. In the first half of 2017, Sakura will add three more new car showrooms. According to the president, new cars will make up almost 90% of total sales in 2018.

In the autumn, Farmer Auto, another sizable auto dealer, established its first new-car showroom. Government limitations on used vehicle imports, which were announced in November, are what is causing people to switch from used to new automobiles.

The majority of these imports originate from Japan, where cars are right-hand drive. However, as traffic in Myanmar is right-handed, all cars must be left-hand drive.

Right-hand drive imports will be essentially prohibited starting in January, and only those made between 2011 and 2014 will be eligible for an exemption in return for documentation of the destruction of earlier vehicles.

In 2016, it’s anticipated that Japan would export 120,000 second-hand cars. Next year, a significant decline is certain, which will hurt many small and medium import businesses.

The Myanmar Automobile Manufacturer & Distributor Association is contesting the prohibition because it claims that the increase in car prices would make them unaffordable for the average person.

A dealership in Yangon saw a 10%–20% increase in used automobile pricing over the previous month. A 32-year-old employee of a non-governmental organisation who was thinking about buying has decided to wait in light of the price instability brought on by the policy change.

According to estimates, more than 90% of the approximately 540,000 passenger vehicles registered in Myanmar at the end of fiscal 2015 were previously owned cars made in Japan.

However, driving a right-hand-drive car in Myanmar might be risky, especially when passing another car on the other side of the road. Since 2013, the government has restricted the import of older right-hand-drive automobiles and similar restrictions were announced in December 2015.

However, the used-car import business put up a fierce fight and the 2015 proposal was abandoned. The current administration, headed by State Counsellor Aung San Suu Kyi, is different this time around since it prioritises job development and seeks to entice manufacturing to Myanmar.

A representative of a Japanese trading business that had requested import limits claimed that under the new administration, industrial policy had taken precedence over used-car importers.

The number of automakers in Myanmar is increasing. In the country, Suzuki Motor sells roughly 1,000 of its 2,700 units produced annually, including its Carry compact truck and Ertiga minivan.

This month saw the start of a new plant’s construction, and the business plans to increase yearly output in 2018 to 10,000 units. Early in 2017, Suzuki will release its Ciaz sedan.

The head of Suzuki’s operations in Myanmar, Takayuki Sugiyama, talked confidently about the advantages of local manufacturing, including being free from registration costs that can reach 30% of the sales price and having strong relationships with dealers.

It’s believed that Ford Motor and other automakers are also contemplating setting up shop in Myanmar. However, it is yet uncertain if limiting used-car imports can increase the new-automobile segment’s sales, which total just 6,000–7,000 units annually.

The cost of new cars ranges from 50% to 200% more than the cost of used cars. Because there aren’t many component suppliers in Myanmar, numerous materials must be imported, which drives up production costs.Although there are many obstacles, the demand for new automobiles seems to be shifting gradually.

In 2014 and 2015, Myanmar was the country that imported the most used Japanese vehicles. From January to October of this year, it came in second place, making up nearly 10% of total exports from Japan. Right-hand drive car restrictions will damage Japanese exporters. After the liberalisation of used-car imports in 2012, the importation of Japanese cars increased dramatically in Myanmar.

Pre-owned cars make up over 90% of Japanese auto shipments to Myanmar, according to the Japan External Trade Organisation. Imports were already slowed down by market saturation in 2015, and the new embargo is expected to make things even worse.

Japanese exporters are working hard to develop new markets, including Sri Lanka. As shipments from the United Arab Emirates to Africa via Dubai have increased, the United Arab Emirates has been the leading destination for shipments in 2016.

GOVERNMENT POLICIES AND REGULATIONS FOR MYANMAR ELECTRIC CAR MARKET

Despite being in its early stages of development, the electric car market in Myanmar is gaining traction, thanks to a combination of evolving government policies and regulations that support its growth. These initiatives are aimed at overcoming challenges related to infrastructure, affordability, and environmental concerns, paving the way for a more sustainable future in transportation.

In 2022, amendments to the Union Tax Law exempted Battery Electric Vehicles (BEVs) and their batteries from specific goods tax and commercial tax, effectively reducing their cost for importers.

Acknowledging the crucial need for charging infrastructure, the Ministry of Electric Power initiated a pilot project in 2022 to construct five stations along the Yangon-Mandalay expressway, with similar projects anticipated throughout the country.

The Myanmar Investment Commission provides a range of incentives for companies investing in the electric vehicle (EV) sector, including tax benefits, support in land allocation, and simplified import procedures.

Established in 2022, a committee has been formed to facilitate collaboration among government bodies, businesses, and academic institutions, working together to create a comprehensive roadmap for the development of EVs in Myanmar.

MOC Order No. 62/2022 streamlined the importation process for BEVs, outlining specific requirements for companies intending to import and sell them.

The supportive policies and regulations set forth by the government present promising opportunities for investors. These opportunities encompass the establishment of charging infrastructure, the creation of dealerships for popular EV brands, the development of local EV production facilities, and the provision of inventive financing solutions for consumers.

COMPANY PROFILE

• Khaingkhaing Sangda
• Toyota
• Mercedes
• BYD
• Volvo 
• BMW
• Nissan
• Audi
• Porsche

THIS REPORT WILL ANSWER FOLLOWING QUESTIONS

1. How many Electric Cars are manufactured per annum in Myanmar? Who are the sub-component suppliers in this region?
2. Cost breakup of a Myanmar Electric Car and key vendor selection criteria
3. Where is the Electric Car manufactured? What is the average margin per unit?
4. Market share of Myanmar Electric Car market manufacturers and their upcoming products
5. Cost advantage for OEMs who manufacture Myanmar Electric Car in-house
6. key predictions for the next 5 years in Myanmar`Electric Car Market
7. Average B-2-B Electric Car market price in all segments
8. Latest trends in the Electric Car market, by every market segment
9. The market size (both volume and value) of the Electric Car market in 2024-2030 and every year in between?
10. Production breakup of the Electric Car market, by suppliers and their OEM relationship
11. How is the government of Myanmar actively addressing the challenges in the electric vehicle (EV) market?
12. What advancements in battery technology are contributing to the reduction of costs in the electric vehicle market in Myanmar?
13. What can be anticipated in terms of the introduction of more affordable electric vehicle options in the Myanmar market?
14. How are banks in Myanmar adapting to support the financing of electric vehicles, and what innovative solutions are being introduced?
15. How will the integration of renewable energy contribute to establishing a sustainable transportation system in Myanmar?
16. In what ways is Myanmar drawing inspiration from neighbouring Southeast Asian countries in its electric vehicle adoption strategy?
17. What specific technology transfer initiatives are being explored to enhance Myanmar's electric vehicle market?
18. What steps has the Ministry of Electric Power taken to address the crucial need for charging infrastructure in Myanmar, as mentioned in the pilot project along the Yangon-Mandalay expressway?