August 18, 2016

Vehicle substitution announcement deflates Yangon’s car market

Car sales in Yangon have slumped due to the suspension of vehicle permits.
Car sales in Yangon have slumped due to the suspension of vehicle permits.

Sales in Yangon’s vehicle market have slumped after the Road Transport Administration Department (RTAD) issued a statement permitting the import of trucks if pickups and light-trucks are revoked as part of a regional substitution scheme, veteran car brokers say.
The statement, issued by the RTAD on 26 July, has reportedly deflated the region’s car market due to the suspension of vehicle permits, on top of a additional 15 per cent income tax which had already dented the market.
“Sales have been poor of late because if you want to import vehicles using the vehicle substitution system, you’re not only permitted to import one kind of vehicle – such as light- trucks, trucks and various buses – but also other models according to the vehicle substitution plan,” said U Sein Hman of a car trading zone situated in Yangon’s Hlaing Township.
Car dealers from the old Thirimingalar car market have stated that only slips which permit the importation of vehicles not for commercial use might increase in price, while those who desire to purchase cars for commercial activities could buy up slips in lieu of wasting their time trying to obtain slips themselves through the official process.
“The authorities should seek out those who renovate damaged cars and put them back on the market. Legal action should be taken against them. Nobody in the car market should be given any grief on their pretext,” said U  Kyaw, an import-export businessman.
The release of the statement has reportedly also augmented the price of other cars on the market by between K1.5 – 2 million depending on vehicle models, car brokers say.


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