CNI News
2 March 2024
Although EVs have been allowed to be imported since 2023, the assembly and production of electric vehicles with (Semi-Knocked-Down) SKD system will be conducted in 2026, according to motorcar entrepreneurs.
The National Electric Vehicle and Related Industries Development Steering Committee has laid down the policy to assemble and produce EVs within the country.
So, The EV sector could create more job opportunities in 2026, U Kyaw Swar Tun Myint, secretary general of Myanmar Automobile Manufacturers And Distributors Association, told CNI News.
" The pilot project started in 2023 to import EVs. In 2024, the pilot project was renewed and importing EVs was allowed. In 2025- 2026, the policy has been laid down to manufacture with SKD system within the country by a national level organization. In 2026, assembly and production of EVs will be mandatory. But at the same time, CBU (Completely Built Up ) cars are allowed to be imported. But percentage of assembly and production of EVs will increase. If EVs were assembled and produced with the country in 2026, job opportunities will increase." he said.
While cars are being assembled and produced
If EVs could be assembled and produced with SKD system within the country, the prices of electric cars will be cheaper and later, all social classes might buy and use EVs. However, at present, in relation to importing EVs, the tax has been exempted.
So, rather than assembly and production within the country, importing EVs was more cost effective, pointed out automobile entrepreneurs. If EVs were assembled and produced within the country, the cost for transporting parts would be higher and the price of each part was also high reportedly.
According to the current situation of Myanmar, Myanmar doesn't have enough electricity to assemble and produce EVs, U Min Min Maung, chairman of the Yangon Region Automobile Manufacturers And Distributors Association, told CNI News.
" For the time being, tax exemption has been allowed to import EVs. If Evs are assembled and produced in Myanmar, electricity won't be available enough.. Next, transportation of EV parts is costly. So, rather that assembly and production of EVs here, importing EVs is more cost effective. And the prices of SKD parts that have to be bought abroad are also high." he said.
While cars are being assembled and produced
although the assembly and production of EVs with the SKD system within the country in 2026 would be implemented, the government needed to support to sustain the SKD system and to assemble and manufacture EVs at an international level, added U Min Min Maung.
" Financial condition of the State, and the difficulties of businessmen, what are they experiencing? And then what can the State support? It depend on that a lot. Depending on that, they worked for a short time to arise a SKD factory and then it disappeared. To avoid such a pattern, the State needs to help and regulate. The State will have to gradually support to become CKD (Completely Knocked Down) from SKD at an international level." he added.
At present, over 1,000 EVs have already entered Myanmar reportedly. In order to import a large number of EVs, If the State set a policy regarding EV import permit, the prices of EVs would fall and many people could buy and use EVs, said automobile market experts.
