Mitsubishi Corporation (MC) is pleased to announce the establishment of a new joint venture company, MM Cars Myanmar Limited (MMCM), with Yoma Nominee Limited (YNL), for the distribution (wholesale), retail sales, after-sales services, and maintenance services of motor vehicles and spare parts manufactured by Mitsubishi Motors Corporation.
YNL is a part of Serge Pun & Associates (Myanmar) Limited enlarged group of companies (SPA Group). MMCM will start operations once the necessary licenses for doing business in Myanmar have been approved.
MC and YNL will each hold 50 per cent shares in MMCM, and it will serve as the official distributor of automobiles manufactured by Mitsubishi Motors Corporation. The joint venture will also provide sales and after-sales services, including the establishment of a showroom and spare parts warehouse in Yangon.
Since the Myanmar government announced a relaxation of vehicle import regulations in 2011 as a part of their democratization policy, the number of used vehicles from Japan has seen a notable increase, making Myanmar the number one destination for used vehicles from Japan in 2014. Import regulations for new vehicles have also been gradually eased since 2012 and in 2015 the Myanmar government announced the approval of new vehicle imports and sales by joint ventures established between foreign companies and Myanmar local companies. These developments are expected to generate further growth in the Myanmar vehicle market.
Until the establishment of MMCM, SPA Group companies had been providing after-sales services to MMC's existing customers through service shops set up in Yangon in May 2013, and in Mandalay in December 2013. With the establishment of MMCM, MC aims to further increase new motor vehicle sales and improve customer satisfaction through the enhancement of after-sales services in Myanmar.
MC has strategically positioned Myanmar as one of its key targets among emerging markets and is jointly exploring business opportunities in Myanmar together with Yoma Strategic, including an elevator-related business, a tyre business, and the operation of Mandalay International Airport. Drawing on the experiences and know-how cultivated in the ASEAN region, MC is seeking to contribute to the further development of the automotive industry in Myanmar, particularly in the vehicle distribution business.
