Tuesday 24 September 2013

Nissan to become the biggest automaker to start production in Myanmar

Japanese multinational automaker Nissan plans to begin complete production of its cars in Myanmar with its Malaysian partner as early as this year, according to the Nikkei business daily.

Nissan Motor Co Ltd and Malaysia’s Tan Chong Motor Holdings Bhd will jointly produce several thousand small passenger cars and pickup trucks annually in the Southeast Asian country.

Nissan will become the biggest carmaker so far to start production in Myanmar. Other automakers, such as Japan’s Suzuki, announced earlier this year that it would restart production here, while U.S.-based Ford has said it would open a showroom here.

The world’s sixth largest automaker has been granted approval by the Myanmar authorities to build a factory that would assemble cars for the domestic market using parts manufactured elsewhere, the Financial Times reported on Thursday.

“We appreciate all the support we have received from the Myanmar government,” a Nissan spokesman was quoted as saying in the FT.

Nissan is still finalising details of the plan with all related parties. A formal announcement, including details of the scale of the investment, is expected to be made today during its chief executive Carlos Ghosn’s visit to Myanmar, alongside executives from Tan Chong Motors, Nissan’s Malaysian business partner, according to the FT.

A Tan Chong affiliate will likely construct an assembly plant in one of the industrial zones in Yangon that will finish cars using parts shipped from Nissan factories in Southeast Asia and elsewhere.

It was reported earlier that Nissan had given Tan Chong sole and exclusive rights to distribute CBU Nissan vehicles in the country. At present, a sales and service centre has been opened in Yangon, and is selling imported pickups and large commercial vans.

According to the earlier report, distribution of Nissan cars in the emerging market was expected to commence in the third quarter of 2013, with a projected sales volume of about 300 units per year.

Besides Tan Chong, which has already begun a joint venture with Nissan, other Malaysian companies are closely looking at the opportunities to enter Myanmar.

“There is a huge potential in Myanmar’s market. There are many opportunities there. Since it is part of ASEAN, there are a lot of similarities between Myanmar and Malaysia. Malaysian automobile companies are also interested in doing business there,” Wong Lai Sum, chief executive officer of the Malaysia External Trade Development Corporation (MATRADE), told Eleven Media.

Meanwhile, another Japanese automaker, Mazda Motor Corp., will soon start selling its new vehicles in Myanmar, Reuters reported on Thursday, quoting its chief executive officer Masamichi Kogai.

Established in 1920, Mazda Motor Corp. had a partnership with the Ford Motor Company from 1979 to 2010. In 2007, Mazda produced almost 1.3 million vehicles for global sales, the majority of which (nearly 1 million) were produced in the company’s Japanese plants, with the remainder coming from a variety of other plants worldwide. In 2011, Mazda was the fifteenth biggest automaker by production worldwide.

source: Eleven Myanmar

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