CNI News
13 Oct 2022
A Toyota auto company in Thilawa Industrial Zone launched the sale of Hilux Double Cab vehicles it assembled during the last two years, according to sources in the market.
The sale has eased the exorbitant prices of Hilux Double Cabs in the market, Chairman U Min Min Maung of Yangon Region Automobile Manufacturers and Distributors Association told the CNI.
He said, “Toyota vehicles are not manufactured in Myanmar. The company is selling vehicles that were assembled during the past two years because their models will be outdated if it continues to keep them in garages. It is selling Hilux Double Cabs. The prices of a Hilux Double Cab rose over MMK 200 million recently. The company is selling them at MMK 170 million but the number of vehicles to be sold is not many. It does not accept pre-orders and cannot tell the delivery date exactly. So, the sale does not have impacts on vehicle prices. However, the prices of Hilux Double Cabs dipped below MMK 200 million.
A Toyota double cab. (GETTY IMAGES)
Currently, the sale does not have impacts on prices of other vehicles. The company is not selling them at previous prices. It sells a Hilux Double Cab at MMK 170 million at the current exchange rate. However, rising car prices have stagnated. It augurs well for buyers.”
Toyota sales agents in Myanmar started accepting orders for Hilux vehicles on 11th October, according to a news report from Nikkei Asia.
However, a Toyota sale agent told the Japanese news agency that precise delivery dates could not be guaranteed as the number of vehicles to be assembled was limited.
Most auto companies, which import parts and assemble them under the SKD system, have suspended their operations due to import policies of the government and exchange rate discrepancies.
Vehicles manufacturing operations can resume if the Ministry of Commerce issues import permits, said U Min Min Maung.
More than 10 companies in Myanmar assembled vehicles such as Suzuki, Hyundai, Jetour, Nissan, KIA and Ford under the SKD system.
Toyota Motors Corporation. (GETTY IMAGES)
Yangon Region Automobile Dealers Association Chairman U Aung Than Oo told the CNI, “The prices of vehicles in the market have been stable for over a month after prices nosedived dramatically. When the prices of US dollars rose from MMK 3,000 per US$ to MMK 4,000 per US$, many people rushed to buy vehicles and sellers could set the prices as much as they wanted. Vehicle prices almost doubled. When vehicle prices rose significantly, businessmen resold their cars. As people do not want to hold cash, they buy vehicles and gold. People who had MMK 500 million invest MMK 300 million in the automobile market and try to resell the cars they bought. Currently, they could not resell their cars and have to keep them. So, their profits are dwindling. At present, people have stopped buying cars and resellers may suffer losses.”
The government has stopped issuing vehicle import permits due to shortages of US dollars since October 2021.
Prices in the vehicle market change depending on market exchange rates and the prices will rise only after the government resumes issuing permits for vehicles and parts to assemble cars under the SKD system, according to vehicle import policy experts.
