November 21, 2017

Vehicle import policy changes increase slip price

The price of a slip for a car is on the rise following an announcement of a change in vehicle import policy.
The Supervisory Committee for Motor Vehicle Imports released an official announcement on 16 October that model year 2014 would be the oldest cars allowed for vehicle import in 2018. Also, only vehicles with left-hand drive are allowed to be imported under the new policy.
The announcement hiked up the slip price from Ks11 to Ks14 million.
“Cars with right-hand drive are highly demanded in the market. Importers do not think deeply and bring high numbers of vehicles into the country, which makes the slip price gradually increase. There has been a demand only from those dealers who want to resell the cars. Auto brokers currently stockpile the vehicles”, said car dealer Ko Ayaykyo.
Dr Soe Tun, the managing director of Farmer Auto Company, said the import businesses might come to stop as 95 per cent of imported cars in Myanmar’s automobile market are used cars from Japan.
The new vehicle import policy affects cars imported with a slip as a return of deregistration of old vehicles, cars imported under consignment system, individually imported cars, black-licensed cars, vehicles for religious use, mini-buses, passenger buses, vehicles donated from abroad, fire trucks, ambulances, hearses, state-owned vehicles, machinery which cannot be driven on public road such as excavators, bulldozers, and asphalt finishers.
“I am satisfied with new vehicle import policy, as Myanmar is right-driving country and therefore, vehicles with left-hand drive ensures road safety. As the import model year limit is 2014, the latest-model vehicles will be seen on Myanmar’s roads”, said Ko Ayaykyo.
The vehicle import policy changes will not affect 1350 CC cars, but the price of trucks is likely to rise. The vehicle prices are expected to rise by between Ks2 and Ks3 million.
“Currently, the price is high in the auto market and so is demand”, said Dr Soe Tun. The policy changes might have a negative impact on right-hand importers on a manageable scale and import enterprises.
“Nevertheless, brand new showrooms benefit from the policy changes. Vehicles such as Suzuki and Nissan, which are locally installed and manufactured, get an advantage”, said Ko Ayaykyo.

 

May Thet Hnin

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