​Myanmar's Ban on Right-Hand Drive Vehicles: Is the Left-Hand Drive Market Becoming a New Frontier for Chinese Used Cars?​​

Analysis of Myanmar's Used Car Market for Export

I. Market Potential

✔ Scale & Growth:

• Myanmar’s used car market is estimated to reach USD 720 million in 2024, with a projected 5.80% CAGR from 2024 to 2029, potentially hitting USD 1 billion by 2029.

• Demand Drivers:

• Local automotive manufacturing lags, with over 90% of vehicles imported as used cars due to high new car prices and low factory capacity.

• Economic growth, rising purchasing power, improved financing access, and digitalization are accelerating market expansion.

II. Market Characteristics

✔ Regional Differences:

• Yangon accounts for 70% of national vehicle registrations, while Mandalay and Ayeyarwady show significant growth potential.

• Consumer Preferences:

• SUVs dominate due to poor road conditions.

• Japanese brands (Toyota, Honda) historically held 90%+ market share, but policy shifts are creating opportunities for Chinese brands.
  ✔ Consumer Trends:

• Growing adoption of online platforms for used car transactions.

III. Policy Environment

✔ Import Restrictions:

• 2017–2018: Banned imports of right-hand drive (RHD) passenger vehicles and buses.

• 2023 Onward: Only left-hand drive (LHD) vehicles allowed, with production year limits:

• Private cars: 2022–2023

• Commercial vehicles: 2019–2023
  ✔ Tax Policies:

• High import taxes (tariffs, special goods tax, commercial tax, registration fees).

• Tax cuts for non-commercial private cars and locally assembled vehicles (since August 2020) to mitigate pandemic impacts.

IV. Competitive Landscape

✔ Key Players:

• Japan previously dominated (>90% market share), but exports have declined due to policy changes.
  ✔ Chinese Advantages:

• Commercial vehicles excel in price competitiveness (lower import taxes).

• Rising quality and cost-performance of Chinese used cars.

V. Growth Opportunities

✔ Policy Support:

• Initiatives like Yunnan Province’s Measures to Promote Used Car Exports streamline approvals, customs, and tax refunds.

• Myanmar’s policy shift creates a vacuum for Chinese players, especially in commercial vehicles.

VI. Risks & Challenges

✔ Policy Risks:

• Myanmar may further restrict imports or raise tariffs to boost domestic manufacturing.
  ✔ Chinese Weaknesses:

• Low brand recognition, concerns over mileage, usage intensity, and opaque transactions.

• Incomplete sales and after-sales networks.