According to multiple reports, Chinese automakers are showing increased interest in the Myanmar auto market, traditionally and historically dominated by Japanese manufacturers.

Though at a relatively low level, the Myanmar auto market is undergoing a boom with a five-fold increase in the number of new cars sold in Myanmar in the three years to 2019, according to data from the Automotive Association of Myanmar.

But this figure does not include cars sold by Chinese makers, which are not members of the association. Industry estimates quoted by the reports put annual sales of Chinese vehicles at between 2,000 and 3,000 units, or about 10% of market share, and sales has been growing rapidly due to an aggressive pricing strategy. Due to government restrictions and tax scheme, importing vehicles has been cost-prohibitive and Chinese manufacturers have stepped up their game by starting manufacturing within the country.

Among these companies are Fujian-based Soueast Motor, which operates 8 showrooms in the country, and opened a factory in Yangon in 2019.
China’s Guangzhou Automobile Group with its partner Brilliance Auto is another one. Brilliance began making SUVs in June 2019 at a factory in Yangon. LS Automotive, sole distributor for Chinese brand GAC since 2016, plans to start local production in 2021. Finally Shining Star Group, a Yunnan-based conglomerate, also opened a plant that assembles Changhe and Chery passenger cars near Mandalay last August.

The local new car market is traditionally dominated by Suzuki boasting a 60% market share, and having announced an investment of USD 100 million just a month ago to increase production at one of its Myanmar factories. And to be ready to defend its turf against its Chinese competitors.