Ford rolls into Myanmar’s car market

Reading Time: 2 minutes

Ford enters myanmarUS carmaker Ford Motor Company announced on April 30 that it will start selling its car and truck lineup in Myanmar, joining a number of other US companies such as Coca-Cola, PepsiCo, General Electric, Visa and Caterpillar rushing to get a foothold in the Southeast Asian nation after sanctions for the former pariah state were been lifted.

Ford will sell vehicles from its production plant in Thailand, where it also operates its Southeast Asian headquarters. A small number of cars will be imported from North American factories, the company said.

Previously, huge import taxes have made imported cars too expensive for many Myanmar citizens. They also were only to be purchased with a special dollar surrogate currency instead of the local currency, the kyat, making it impossible to own cars for all except government cronies and industry godfathers. With the lifting of import restrictions, a currency reform and the abolishment of the shadow currency, the car market is now on the way to reflecting real demand.

Currently, the Myanmar car market is dominated by Japanese second-hand cars from the 1980s and 1990s. Over 80 per cent of cars being driven in the country are between 10 and 20 years old and don’t have service, let alone warranty. Most used cars sell for a whopping $15,000 to $22,000, according to Irrawaddy Magazine. Only 10 in 1,000 residents own passenger cars, compared to the average 50 per 1,000 residents in other Asian countries.

As Myanmar’s economy develops, “Myanmar people and businesses will increasingly want and require personal, as well as commercial vehicles to help support their progressing lives, lifestyles and businesses”, said Dave Westerman, Asia Pacific Regional Manager of Ford Export and Growth Operations.

Where Ford goes, General Motors can’t be far behind. “We are looking at going back now that the restrictions have been lifted,” says GM spokesman Alan Adler.

US carmakers are also eager to counter on Japan’s rising influence on the Myanmar vehicle market. Toyota, Nissan, Honda and Suzuki all have expressed their interest in pouring investment into Myanmar and are currently setting up dealerships and also factories there, being followed by Hyundai and Kia from South Korea.

 

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

US carmaker Ford Motor Company announced on April 30 that it will start selling its car and truck lineup in Myanmar, joining a number of other US companies such as Coca-Cola, PepsiCo, General Electric, Visa and Caterpillar rushing to get a foothold in the Southeast Asian nation after sanctions for the former pariah state were been lifted.

Reading Time: 2 minutes

Ford enters myanmarUS carmaker Ford Motor Company announced on April 30 that it will start selling its car and truck lineup in Myanmar, joining a number of other US companies such as Coca-Cola, PepsiCo, General Electric, Visa and Caterpillar rushing to get a foothold in the Southeast Asian nation after sanctions for the former pariah state were been lifted.

Ford will sell vehicles from its production plant in Thailand, where it also operates its Southeast Asian headquarters. A small number of cars will be imported from North American factories, the company said.

Previously, huge import taxes have made imported cars too expensive for many Myanmar citizens. They also were only to be purchased with a special dollar surrogate currency instead of the local currency, the kyat, making it impossible to own cars for all except government cronies and industry godfathers. With the lifting of import restrictions, a currency reform and the abolishment of the shadow currency, the car market is now on the way to reflecting real demand.

Currently, the Myanmar car market is dominated by Japanese second-hand cars from the 1980s and 1990s. Over 80 per cent of cars being driven in the country are between 10 and 20 years old and don’t have service, let alone warranty. Most used cars sell for a whopping $15,000 to $22,000, according to Irrawaddy Magazine. Only 10 in 1,000 residents own passenger cars, compared to the average 50 per 1,000 residents in other Asian countries.

As Myanmar’s economy develops, “Myanmar people and businesses will increasingly want and require personal, as well as commercial vehicles to help support their progressing lives, lifestyles and businesses”, said Dave Westerman, Asia Pacific Regional Manager of Ford Export and Growth Operations.

Where Ford goes, General Motors can’t be far behind. “We are looking at going back now that the restrictions have been lifted,” says GM spokesman Alan Adler.

US carmakers are also eager to counter on Japan’s rising influence on the Myanmar vehicle market. Toyota, Nissan, Honda and Suzuki all have expressed their interest in pouring investment into Myanmar and are currently setting up dealerships and also factories there, being followed by Hyundai and Kia from South Korea.

 

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid