rapster88
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The Migs have been landing and taking off at Hmawbi with the new runway. I guess they will eventually separate from Mingalardon.
Myanmar Defence Forum
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The Migs have been landing and taking off at Hmawbi with the new runway. I guess they will eventually separate from Mingalardon.
MINN
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Airstrike on AA with A-5.
Aung Zaya
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Good to automotive industry is developing in Myanmar. May be within in next 5 years, total production could reach up to 1000,000.
Chinese carmakers move into Myanmar to battle Japanese rivals
Soueast Motor and GAC take advantage of rules favouring locally made vehicles
Chinese carmakers want a larger slice of Myanmar’s booming vehicle market, which is dominated by Japanese companies © AFP
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Yuichi Nitta, Nikkei staff writer APRIL 23 20201
Chinese carmakers are ramping up production in Myanmar as they go head to head with dominant and entrenched Japanese rivals in the fast-growing market.
There was a fivefold increase in the number of new cars sold in Myanmar in the three years to 2019, when sales hit 21,916 units, according to data from the Automotive Association of Myanmar.
The figure does not include cars sold by Chinese makers, which are not members of the association. Industry estimates put annual sales of Chinese vehicles at between 2,000 and 3,000 units, or about 10 per cent of market share, and growing rapidly.
Japanese manufacturers are warily eyeing their new rivals. “Chinese brands have the capacity to quickly expand their dealerships and earn a reputation in Myanmar,” said a manager of one Japanese brand.
Fujian-based Soueast Motor is one of the leading Chinese brands in Myanmar. Soe Thant Zaw, director of Dagon Arr Mahn Thit, a local company that manufactures and sells Soueast vehicles, said his company sold more than 1,500 units last year and 500 in the first quarter of this year.
“The quality of [Chinese] vehicles has improved a lot in the last five years. They can compete with Japanese cars, which dominate the market,” the director said. The company opened a factory in Yangon, Myanmar’s biggest city, in 2019.
Guangzhou Automobile Group showcased its GS5 sport utility vehicle at the Yangon International Motor Show in late February © Yuichi Nitta
Soueast Auto now operates eight showrooms. “In the past, people in Myanmar only knew Toyota. But the younger generation — those in their 30s or 40s — prefer new cars,” Soe Thant Zaw said. “They don't care about the brand; only quality and functionality.”
Myanmar is an attractive growth area for Chinese carmakers, which face a slowing domestic market that peaked in 2017. Severe competition at home, where roughly 30 per cent of global car sales are made, has prompted them to shift production to emerging Asian markets in recent years.
China’s sport utility vehicles are popular in Myanmar, where road conditions are poor, and demand is strong for new vehicles in the $20,000 to $30,000 price range.
In late February, China’s Guangzhou Automobile Group and Brilliance Auto participated in the second Yangon International Motor Show. Brilliance began making SUVs in June 2019 at a factory in Yangon, and has sold more than 200 cars in about eight months, according to a salesperson at its local distributor.
LS Automotive, a Myanmar-based company that has been the sole distributor for GAC since 2016, plans to start local production in 2021.
In August 2019, Shining Star Group, a Yunnan-based conglomerate, also opened a plant that assembles Changhe and Chery passenger cars near Mandalay, the country’s second-largest city.
This article is from the Nikkei Asian Review, a global publication with a uniquely Asian perspective on politics, the economy, business and international affairs. Our own correspondents and outside commentators from around the world share their views on Asia, while our Asia300 section provides in-depth coverage of 300 of the biggest and fastest-growing listed companies from 11 economies outside Japan.
Subscribe | Group subscriptions
The Myanmar government started opening its economy after the country transitioned to civilian rule in 2011. It eased restrictions on imported cars, which only the elite could own before the reforms, resulting in a huge influx of Japanese used cars.
But in 2018, the government banned the import of used vehicles and promoted local manufacturing in an effort to attract foreign carmakers.
To incent purchases of domestically made cars, the government waives special goods tax and registration fees. But buyers of imported cars still have to pay them, in effect doubling the cost of a vehicle.
To further discourage ownership of imports, the government requires buyers to obtain a “scrap certificate” at a cost of about $9,000. This allows the holder to purchase an import — an expense that buyers of new, locally made vehicles do not have to bear.
Demand for vehicles is so strong that the government stopped issuing parking permits for the heavily congested Yangon area in 2016.
Japan's Suzuki Motor has been producing locally assembled vehicles ahead of its rivals. Looking to head off the new competition, the company announced in March that it would construct a new plant in Myanmar and raise annual production capacity fourfold to 55,000 units. Toyota Motor also started building a local factory, aiming to begin production in 2021.
A version of this article was first published by the Nikkei Asian Review on April 12 2020. ©2020 Nikkei Inc. All rights reserved.
Related stories
Suzuki invests $100m to raise Myanmar production capacity
Race for Myanmar's auto market heats up as Toyota builds factory
Toyota to build its first assembly plant in Myanmar
Hyundai joins fray in Myanmar's crowded auto market
Singapore vows to be first in south-east Asia to ditch petrol cars
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Chinese carmakers move into Myanmar to battle Japanese rivals
Soueast Motor and GAC take advantage of rules favouring locally made vehicles
Chinese carmakers want a larger slice of Myanmar’s booming vehicle market, which is dominated by Japanese companies © AFP
Share on Twitter (opens new window)
Share on Facebook (opens new window)
Share on LinkedIn (opens new window)
Share on Whatsapp (opens new window)
Save
Yuichi Nitta, Nikkei staff writer APRIL 23 20201
Chinese carmakers are ramping up production in Myanmar as they go head to head with dominant and entrenched Japanese rivals in the fast-growing market.
There was a fivefold increase in the number of new cars sold in Myanmar in the three years to 2019, when sales hit 21,916 units, according to data from the Automotive Association of Myanmar.
The figure does not include cars sold by Chinese makers, which are not members of the association. Industry estimates put annual sales of Chinese vehicles at between 2,000 and 3,000 units, or about 10 per cent of market share, and growing rapidly.
Japanese manufacturers are warily eyeing their new rivals. “Chinese brands have the capacity to quickly expand their dealerships and earn a reputation in Myanmar,” said a manager of one Japanese brand.
Fujian-based Soueast Motor is one of the leading Chinese brands in Myanmar. Soe Thant Zaw, director of Dagon Arr Mahn Thit, a local company that manufactures and sells Soueast vehicles, said his company sold more than 1,500 units last year and 500 in the first quarter of this year.
“The quality of [Chinese] vehicles has improved a lot in the last five years. They can compete with Japanese cars, which dominate the market,” the director said. The company opened a factory in Yangon, Myanmar’s biggest city, in 2019.
Guangzhou Automobile Group showcased its GS5 sport utility vehicle at the Yangon International Motor Show in late February © Yuichi Nitta
Soueast Auto now operates eight showrooms. “In the past, people in Myanmar only knew Toyota. But the younger generation — those in their 30s or 40s — prefer new cars,” Soe Thant Zaw said. “They don't care about the brand; only quality and functionality.”
Myanmar is an attractive growth area for Chinese carmakers, which face a slowing domestic market that peaked in 2017. Severe competition at home, where roughly 30 per cent of global car sales are made, has prompted them to shift production to emerging Asian markets in recent years.
China’s sport utility vehicles are popular in Myanmar, where road conditions are poor, and demand is strong for new vehicles in the $20,000 to $30,000 price range.
In late February, China’s Guangzhou Automobile Group and Brilliance Auto participated in the second Yangon International Motor Show. Brilliance began making SUVs in June 2019 at a factory in Yangon, and has sold more than 200 cars in about eight months, according to a salesperson at its local distributor.
LS Automotive, a Myanmar-based company that has been the sole distributor for GAC since 2016, plans to start local production in 2021.
In August 2019, Shining Star Group, a Yunnan-based conglomerate, also opened a plant that assembles Changhe and Chery passenger cars near Mandalay, the country’s second-largest city.
This article is from the Nikkei Asian Review, a global publication with a uniquely Asian perspective on politics, the economy, business and international affairs. Our own correspondents and outside commentators from around the world share their views on Asia, while our Asia300 section provides in-depth coverage of 300 of the biggest and fastest-growing listed companies from 11 economies outside Japan.
Subscribe | Group subscriptions
The Myanmar government started opening its economy after the country transitioned to civilian rule in 2011. It eased restrictions on imported cars, which only the elite could own before the reforms, resulting in a huge influx of Japanese used cars.
But in 2018, the government banned the import of used vehicles and promoted local manufacturing in an effort to attract foreign carmakers.
To incent purchases of domestically made cars, the government waives special goods tax and registration fees. But buyers of imported cars still have to pay them, in effect doubling the cost of a vehicle.
To further discourage ownership of imports, the government requires buyers to obtain a “scrap certificate” at a cost of about $9,000. This allows the holder to purchase an import — an expense that buyers of new, locally made vehicles do not have to bear.
Demand for vehicles is so strong that the government stopped issuing parking permits for the heavily congested Yangon area in 2016.
Japan's Suzuki Motor has been producing locally assembled vehicles ahead of its rivals. Looking to head off the new competition, the company announced in March that it would construct a new plant in Myanmar and raise annual production capacity fourfold to 55,000 units. Toyota Motor also started building a local factory, aiming to begin production in 2021.
A version of this article was first published by the Nikkei Asian Review on April 12 2020. ©2020 Nikkei Inc. All rights reserved.
Related stories
Suzuki invests $100m to raise Myanmar production capacity
Race for Myanmar's auto market heats up as Toyota builds factory
Toyota to build its first assembly plant in Myanmar
Hyundai joins fray in Myanmar's crowded auto market
Singapore vows to be first in south-east Asia to ditch petrol cars
Get alerts on Automobiles when a new story is published
Get alerts
Copyright The Financial Times Limited 2020. All rights reserved.
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rapster88
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That’s quite close to the buildings and presumed “civilians”. Talk about precision.
Btw, does anybody still have the video of A5 dodging SAM in the Shan State?
Tagaung
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guys, I saw this photo of Myanmar KS 1 missile in production.
And it is labled GYD-1B, and also looks a little bit fatter than chinese version. (is this mean it has more range..?)
I google GYD-1B, i got no results. Does anyone of us know what it means..?
(Photo: Myanmar KS-1 missile production facility)
(Photo: Chinese SAM missile labled HQ-12)
And it is labled GYD-1B, and also looks a little bit fatter than chinese version. (is this mean it has more range..?)
I google GYD-1B, i got no results. Does anyone of us know what it means..?
(Photo: Myanmar KS-1 missile production facility)
(Photo: Chinese SAM missile labled HQ-12)
Aung Zaya
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May be a code name of export version of KS-1 B.
Tagaung
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or may be a code name for our version.
i think KS-1 b will be still labled as KS-1 B like in this photo.
Aung Zaya
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We have many projects like this. U will get surprised in next 5 to 8 years from now.
MINN
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MG is British and Borgward is German so I hope in the future BMW, Audi, Mercedes, Volkswagen would come.
Aung Zaya
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But both are now owned by chinese car groups. But still possible if Car factories from thailand want to moved to Myanmar.
Thai factory is owned by CP group. Myanmar factory may be extension from CP Myanmar. CP has many business in Myanmar.
Aung Zaya
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Yes. may be. There are more than 2400 spare part factories in Thailand. If we can maintain good reputation they will surely moved into Myanmar.
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