Car sales decline due to slowdown

Sales of used and locally-produced semi-knocked down (SKD) imported cars have fallen during the COVID-19 period, according to dealers in Yangon.
The dealers attribute the decline to uncertainty and economic hardships caused by the COVID-19 restrictions. Sales for luxury cars have also declined, possibly due to a rumoured government plan to grant tax exemptions on permits for civil servants.
“The current car market is very quiet at the moment due to the economic downturn. We have also heard news that senior civil servants will be granted permits to impor tax-exempt vehicles at the end of this months. If that’s the case, the value of cars will decline by tens of millions of Kyats. It will distort the market,” said U Thein Tun a car dealer from Hlaing.

If import permits for senior civil servants are allowed, the value of luxury or expensive cars (at a value of K100 million or more) are likely to decline by between K20 and K30 million. Dealers are anticipating that cars with the value of K10 million are likely to fall by about K1 million. The market for locally-produced SKD cars will also be affected.“The market for locally assembled new cars and used cars looks really bad now,” said U Thant Zin, another car dealer.
Myanmar announces tougher measures for arriving travellers

“Locally-produced SKD cars are being sold at between K30 and K40million, plus there is news of car import permits for civil servants, so sales have dropped. The
country’s economy is not good and that is another factor. If the economy improves, then the car market can bounce back. If import permits are granted to civil servants the car market, especially used cars priced between K60 and K100million will be affected,” he added.
People will decide to buy cars only when they really need to, and most of buyers are still waiting to buy while watching policy changes under the present government.”I was thinking about buying a car to send my kids to school in, but then I heard about the government employee tax exemptions. Then car prices dropped, so it might be a good time to buy soon,” said Ma Ohmar, who runs a small shop in Kyaukmyaung. – Translated

To see the original article click link here

Source : Myanmar Times

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.