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Ford to Locally Distribute New, Cheaper Cars With Yangon License Plates

Ford’s new assembly plant in Yangon, officially launched on July 21, will enable the US car maker to sell two new models at lower prices. As they will be assembled and distributed locally, customers will be able to obtain Yangon license plates for the cars.

Located at the East Dagon Industrial Zone, the new Ford plant will locally assemble a wide range of Ford 4WD Ranger and Everest vehicles priced between US$30,400 for the Ford Ranger Double Cab and $49,500 for the 7-seat Ford Everest SUV.

The vehicles will be distributed in Myanmar by Capital Automotive Limited (CAL), Ford’s sole distributor and dealer in the country since April 2013. CAL works in partnership with the RMA Group of Thailand and the Capital Diamond Star Group in Myanmar. Currently, Ford vehicle dealerships can be found in Yangon and Mandalay.

The Yangon plant has the capacity to produce 2,000-3,000 cars, which matches the market’s current demand for Ford vehicles. “Since March, we have already produced 250 cars. We have received 450 orders for the Ranger and Everest so far and are trying to catch up with the orders,” said CAL chair U Khin Tun.

So far, CAL has invested a total of US$10 million in the plant but is prepared to pump in more funds to raise its capacity as and when demand for the vehicles rises.

“For this plant, it took us nearly two years of preparation time. We have plans to scale the plant and we can start now. But we will increase production depending on the economy,” said U Khin Tun. CAL will be marketing its cars to new car buyers, fleet buyers, families and businesses to gain market share.

Price advantage

More importantly, CAL will have the advantage of price compared to other foreign vehicle dealers which fully import cars. “In my opinion, by producing the two models locally, Ford will be exempt from paying tax to the Road Transportation Department. So, their selling price will decrease by about $8,000 to $10,000 per vehicle compared to us,” said a spokesperson for Toyota Aye and Sons, the official Toyota dealer in Yangon.

Toyota does not have a local facility and is currently exploring the possibility of building a car factory in Myanmar. Last year, demand for Toyota vehicles rose by 29 per cent from the year before. Toyota is the second largest car dealer in Myanmar, trailing Suzuki, U Myo Myint Thein said.

‘’Based on the volume, Suzuki is higher than Toyota. But competition is rising and we are also competing with Ford and Mazda in Myanmar.”

Yangon license

The other big advantage for Ford is its ability to now offer customers Yangon license plates on their vehicles.

Under the previous administration, car importers were required to obtain a parking recommendation letter proving they have enough space to park in their homes before importing was allowed.

Since April 2016 though, the Yangon regional government exempted importers with Yangon licenses from having to produce the parking recommendation letters.

Yangon Chief Minister U Phyo Min Thein said that the government will move on to sort out the license issues after upgrading the Yangon Bus Service this year.

 

Source: Myanmar Times

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