Auto industry representatives have asked Yangon’s chief minister to lower import duties on unassembled cars. The request comes as domestic and foreign car makers look to boost production in Myanmar.

During a meeting with Yangon Region Chief Minister U Phyo Min Thein, the representatives pointed out that import duties for semi-knocked-down and fully-knocked-down vehicles is the same as for fully assembled cars. Thus, locally-assembled cars often cost the same as ones assembled abroad. The Ministry of Planning, Finance and Industry appears to be in favor of lower import duties. “High duties on SKD cars may hinder the sector from developing. So, we have requested the chief minister help to reduce the duties and has said he will bring the matter up to the union government,” said an unnamed senior official of that ministry speaking to the Myanmar Times.

The request comes as Myanmar seeks to rev up its domestic auto industry. Yangon stopped registering new imported vehicles in 2016. But last December U Phyo Min Thein announced that Yangon would soon begin registering imported vehicles that were assembled domestically. Last year, Suzuki Myanmar Motor Co. Ltd., which holds the largest domestic market share, increased production to around 15,000 cars and trucks from 12,000 in 2018. In May, 2019, Toyota announced plans for a new manufacturing plant in the Thilawa SEZ. From China, Gold AYA Motor International is building a USD 30 million assembly plant in Mandalay that will roll out 50,000 new vehicles over the next five years. The number of cars on Myanmar roads is on track to reach 2 million by 2020.