Yangon’s new automotive policy to commence in October

The much-touted Yangon Vehicle Quota Certificate (YVQC) system for car importers will start in Yangon in October, said U Phyo Min Thein, the region’s chief minister, during a press conference on August 24.

Under the new vehicle registration system, buyers will be allowed to bid for a YVQC, which gives them the right to apply for a license to import and own a vehicle in Yangon for a fixed period. Bidders can bid between K3 million and K9 million for the certificate. The system was originally supposed to commence in April.

‘’We are now preparing to issue Yangon licences for individual car importing under the YVQC system in October, after which we will be able to control the quota for cars imported into Yangon,” U Phyo Min Thein remarked.

The decision is significant as it could spur more demand for imported vehicles and generate growth in the industry. It also comes after months of deliberating the practicality of implementing YVQC over the existing system of using parking recommendation letters to purchase a vehicle.

The delays led to a written complaint by the European and US chambers of commerce in the country to the commerce and transport ministries. At that time, the American Chamber of Commerce Myanmar said US car dealers would like to see the YVQC implemented as soon as possible and hoped that registrations could commence in June,

Car dealers had been waiting for a new car import policy since April 2016, when the government suspended the parking recommendation system in Yangon to reduce traffic congestion and free up parking space for Yangon licensed vehicles. However, imports under the old system were permitted to continue in other states and regions.

Importantly, the announcement lays months of market speculation about whether the YVQC would be implemented or not to rest. Buyers had delayed their plans to buy new cars, which was bad for business.

In fact, some are still doubtful despite the chief minister’s announcement. Ko Soe Naing, a local car dealer, said “the car market has not been stable because the government kept promising and delaying the implementation of the YVQC.

This time may not be any different. We still need to wait and see if it happens.”

Source: Myanmar Times

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