The Myanmar government’s fresh regulations has encouraged Japanese automaker Nissan to begin CKD operations in the region. Citing good growth prospects, the company takes its first step with the Nissan assembling in Myanmar. The car will be assembled at local partner’s Tan Chong facility in Myanmar.
New auto sales in Myanmar reportedly stands at 5,000 units a year. Though the auto market is roughly estimated to be around 1 lakh units a year, 90 per cent of vehicles are sold as second hand imports from Japan. Reports indicate that the Tan Chong facility in Myanmar has an annual production capacity of few hundred units, but with new joint factory being set up by the end of this year, the company expects to have an annual production capacity of 10,000 units when it begins operations in 2019. Reports further indicate that investments for this purpose have reached close to $50 million and with this the company expects to emerge as a strong player in the growing automotive industry in the region.
The Myanmar government has imposed stricter norms this year on import of used cars from international markets with an aim to improve safety and attract more automotive manufacturers to the country. The vehicle will continue to be offered with 1.5-litre petrol and diesel engine option that generates 97bhp and 84bhp respectively. Owing to localization, the Nissan Sunny will be competitively priced and the automaker can expect to see a decent growth in sales.