Suzuki drives back into Myanmar

yangon traffic
Traffic in Yangon: The market for new cars is still weak

Japanese car maker Suzuki will resume its vehicle and spare part production in Myanmar after it got approval from the government to set up a new factory and revive its existing plant in Yangon, which was operated as a joint venture with Myanmar’s government between 1998 and 2010, but later closed after an earlier contract expired.

Suzuki said it will invest around $7 million and produce mini-trucks for the local market starting from 2015. The old plant is situated in the Industrial Zone in South Dagon while the new plant will be located in Thilawa Special Economic Zone.

However, Suzuki’s investment is not likely to add a lot to the companies overall output. Suzuki’s initial rate of production will be as low as 1,200 vehicles a year. There is currently almost no market for new cars in Myanmar, a Suzuki spokesman said, though demand for secondhand vehicles and spare parts is strong.

Statistics show that the number of various registered motor vehicles operating in Myanmar stood 3.6 million as of November in 2012, including 3.1 million motorcycles, 308,983 passenger cars, 69,953 trucks, 19,440 buses, according to the country’s road transport administration.

 



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[caption id="attachment_6909" align="alignleft" width="300"] Traffic in Yangon: The market for new cars is still weak[/caption] Japanese car maker Suzuki will resume its vehicle and spare part production in Myanmar after it got approval from the government to set up a new factory and revive its existing plant in Yangon, which was operated as a joint venture with Myanmar's government between 1998 and 2010, but later closed after an earlier contract expired. Suzuki said it will invest around $7 million and produce mini-trucks for the local market starting from 2015. The old plant is situated in the Industrial Zone in South...

yangon traffic
Traffic in Yangon: The market for new cars is still weak

Japanese car maker Suzuki will resume its vehicle and spare part production in Myanmar after it got approval from the government to set up a new factory and revive its existing plant in Yangon, which was operated as a joint venture with Myanmar’s government between 1998 and 2010, but later closed after an earlier contract expired.

Suzuki said it will invest around $7 million and produce mini-trucks for the local market starting from 2015. The old plant is situated in the Industrial Zone in South Dagon while the new plant will be located in Thilawa Special Economic Zone.

However, Suzuki’s investment is not likely to add a lot to the companies overall output. Suzuki’s initial rate of production will be as low as 1,200 vehicles a year. There is currently almost no market for new cars in Myanmar, a Suzuki spokesman said, though demand for secondhand vehicles and spare parts is strong.

Statistics show that the number of various registered motor vehicles operating in Myanmar stood 3.6 million as of November in 2012, including 3.1 million motorcycles, 308,983 passenger cars, 69,953 trucks, 19,440 buses, according to the country’s road transport administration.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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