Small Used Cars Sell Like Hotcakes in Mandalay

Small used cars with 1.3cc engines and priced at K20 million (US$14,970) are bestsellers in the Mandalay car market amid new government regulations that only brand new left-hand-drive vehicles will be allowed to be imported into the country starting in 2018.

Car dealers in Mandalay said that when the new government vehicle import regulations were released in October last year, prices of used Japanese-made right-hand-drive cars rose 20 percent.

But the car dealers said prices for small cars with 1.3cc engines have stabilised between K15 million and K20 million.

“It is hard to find buyers if the prices are higher than that,” said U Win Myint, secretary of Mandalay Pyi Gyi Myat Shin car trade camp.

“It is hard to consider the market situation for the whole of this year. However, Japanese used cars will continue to lead the market,” he added. “The users’ choice from right-hand-drive to left-hand-drive could change step-by-step and will take time.”

U Win Myint said the prices of left-hand-drive cars are still very high and could only be affordable to rich people.

He said used Japanese right-hand-drive cars still get a big market share as they are affordable to the growing middle class and high quality spare parts are available.

U Thein Swe, a car dealer in Mandalay, said vehicles with average prices of between K15 million and K20 million dominate the current market.

He added that for cars with bigger engines, buyers are only interested if the prices are between K25 million and K30 million.

“If the prices are higher than that, buyers are rare,” he said. “Besides car dealers don’t dare to sell lower than these prices. It is sure that car prices will remain high.” U Thein Swe said.

According to 2018 car import regulations, car dealers can only import left-hand-drive cars that are 2014 models or later, while individuals can only import left-hand-drive cars that are 2016 models or later.

 

Source: Myanmar Times

 

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