Myanmar’s automotive market is likely to grow at a compound annual growth rate (CAGR) of 7.8 percent from 2013 to 2019, driven by a growing economy, infrastructure development and increasing income, new analysis from Frost & Sullivan showed.
Currently dominated by used vehicles, the market is expected to reach 95,300 in 2019 also due to greater integration with ASEAN.
Dushyant Sinha, Associate Director, Automotive Practice, Asia-Pacific at Frost & Sullivan, however, said that factors such as unpredictable regulatory changes, high car prices, under-developed auto service market and inadequate road infrastructure might hinder the potential growth.
Myanmar is highly dependent on two-wheelers, accounting for more than 80 percent of the market while passenger cars represent 11 percent. Meanwhile, trucks and buses only make up 3 percent and 1 percent, respectively. A young labour force with a high two-wheeler ownership promises a potential car buying group in the long term.
Dushyant said Japanese brands are expected to continue dominating the passenger vehicle market even in 2019, with Honda, Suzuki and Nissan gaining popularity thanks to their small car offerings (such as Honda Fit/Brio, Suzuki Swift, and Nissan March) which would appeal to Myanmar customers. Chinese and Korean brands will also see growth due to their more affordable prices and smaller engine sizes compared to their Japanese counterparts.
