There has been an increase in sales of Chinese motorcycles in Mandalay, especially those sold through instalments, according to bike traders in Myanmar’s second largest city.
A recent appreciation in Chinese yuan (or renminbi) has caused a spike in prices of motorcycles that are imported overland from China to Mandalay.
Previously, the motorcycles were rarely offered to customers through instalments, but the price hike has led sellers to offer the bikes through different instalment schemes.
However, the demand for new bikes has depressed the second hand motorbike market.
“Since the showrooms are offering more instalment schemes than previous years, demand for second hand motorcycles has decreased. Those with enough money prefer Japanese, Thai or Indian motorcycles, but middle-income people still prefer new Chinese motorcycles,” Ko Min Naing of Manawhari Cycle Market said.
Chinese motorcycles with 110cc engines typically cost between $400 and $700.
Motorcycles are banned in Myanmar’s largest city Yangon, but Mandalay residents primarily rely on motorcycles for transport.
Source: Myanmar Business Today