Myanmar's drivers are shifting to electric vehicles, a move that underscores the military junta's growing ties with China, where most of the EVs and component parts are manufactured. Contact online >>
Myanmar''s drivers are shifting to electric vehicles, a move that underscores the military junta''s growing ties with China, where most of the EVs and component parts are manufactured.
Industry experts in Myanmar suggest China''s affordable vehicles will continue to dominate the EV market because the ruling junta has banned importing EVs made elsewhere. The prohibition extends to luxury models.
The experts also said that international sanctions have made it difficult for the regime to obtain the hard currency it needs to buy imported gas or diesel fuel that powers internal combustion engine (ICE) vehicles.
And while young Burmese view EVs as "iPhones on wheels," because of their user interface and driver-assistance features, a larger swath of would-be buyers sees the push for EVs as unrealistic given the lack of charging infrastructure and persistent power outages
The outages have been a problem since the February 1, 2021, coup staged by the military, which made unsubstantiated claims of fraud in an election dominated by State Counsellor Aung San Suu Kyi and the governing National League for Democracy (NLD) party.
Last year, Myanmar launched a one-year EV pilot project that led to a more than six-fold increase in EVs within a year, according to Myanmar''s Road Transport Administration Department.
An EV industry analyst based in Myanmar, who asked to remain anonymous to avoid attracting the regime''s attention, told VOA Burmese via Zoom on March 15 that the trend was boosted by China''s oversupply of EVs and the military government''s prohibition against importing high-end luxury EVs.
Electric cars, along with lithium batteries and solar panels, were named by Chinese President Xi Jinping as "pillars of the economy" in his New Year''s address. Beijing sees these sectors as driving a manufacturing export boom designed to offset flagging domestic demand, which still has not recovered from draconian pandemic lockdowns.
China is accused by the European Union and others of selling EVs at below the cost of making them to drive out competitors. Beijing''s official Global Times said it is increased international competition in the sector that has pushed prices down while a decline in the value of the yuan has made Chinese vehicles more economical.
China denies dumping. Liu Pengyu, spokesperson for the Chinese Embassy in Washington, said, "Chinese cars are popular in the global market because of their innovative features and high quality coming out of fierce competition rather than the so-called low-price dumping."
He continued, "The leapfrog development of China''s auto industry has provided cost-effective products with high quality to the world. Every one in three exported automobiles from China is an electric car, which contributes significantly to the world''s green and low-carbon transition."
The Myanmar-based analyst said Chinese-made EVs are the only option for those wanting new cars. People are turning to EVs due to new fuel-run motor vehicle import bans."
The military government initially permitted the importation of about 3,000 Chinese-made EVs in 2023, including those for personal use, buses and vehicles intended for taxi services.
A Burmese scholar watching China-Myanmar affairs from elsewhere in the region and who asked not to be named to avoid endangering family still in the country, said expanding EV sales reflect the junta''s economic ties with China.
The scholar said they also underscore an effort by the junta chief, Senior General Min Aung Hlaing, to reduce energy imports in any way possible.
Vehicle ownership rates in Myanmar remain among the lowest in Southeast Asia, with just 741,370 registered vehicles in 2022 for a population of approximately 55 million. According to the World Bank, the per capita GDP hovers around $1,149.
Thant Zin, an electric car dealer from Yangon, said consumer interest is strong for vehicles priced around 1,500,000,000 kyats or about $35,000, because they come with a solid warranty.
The dealer said EVs face challenges, such as spare parts taking two to three months to arrive from China. Thant Zin said that before the coup, ICE vehicle parts from Japanese carmakers were readily available nationwide.
"The advantages become apparent once you start using it," said the EV owner.
The analyst said there are charging stations along the major expressway connecting Myanmar''s two largest cities, Yangon and Mandalay, but elsewhere it can be hard to find a charge. Some private businesses, such as hotels and restaurants, have begun offering charging stations for their clientele, he added.
The EV owner said Myanmar needs significant infrastructure improvements to support EV adoption. While there are a few charging stations in shopping malls and at some gas stations in Yangon, they don''t fully function due to the power outages.
"There is only one fully operational charging station here in Yangon, and it operates from 6 in the morning to 5 or 6 in the evening," he said. "We want them to extend operating hours. We also wish for other stations to be fully functional."
VOA''s Burmese Service contributed to this report.
The Republic of the Union of Myanmar intends to promote foreign investments in the electric vehicle sector in Myanmar by means of a mix of legal and policy initiatives aimed at incentivizing such investments.
For the purpose of this article we have considered the year 2022 as the most critical year for legal regulations on electric vehicles (“EVs“) and have pivoted our discussion on legal developments prior to, during and after 2022”.
Pre-2022: General rules on automobile retail showrooms andimportation ofVehicle’s
Prior to 2022, Myanmar had general laws regulating the importation and display of all types of vehicles in showrooms, including license requirements for owning and operating showrooms for said purpose.
As per a notification released by the MOC in March 2021, a DICA registered service company is eligible to apply for and obtain a showroom license upon fulfilling the conditions prescribed in the said notification.
Some of the key provisions of the notification are as follows:
Based on informal inquiries with the officials of the Ministry of Commerce ("MOC"), we understood that although these directives do not specifically include EVs within their remit, however, as a matter of practice, they extend indirectly to importation and display of EVs as well.
Overall, there were no regulations that specifically applied to EVs – its manufacture and/or import into Myanmar. General laws applicable to all types of vehicles were deemed to apply to EVs.
2022: The Yearof Electric Vehicles in Myanmar
Non-Urban Area EV Charging Station Pilot Project
On 31 August 2022, the Ministry of Electric Power agreed to a pilot project to build five electric vehicle charging stations on the Yangon-Mandalay expressway aimed at addressing the lack of charging options outside of urban areas. The duration of this project is 12 months commencing from 1 January 2023 and ending on 31 December 2023.
As per the statement of the MoEP, each of the new charging stations will be installed with the capacity to simultaneously charge 50 EVs. Further the statement also disclosed the location of the charging stations at Zero Mile No. 3 Highway junction, 115th Mile Pyu Rest Stop, 201/2nd milepost Naypyitaw C-junction, 284/4th milepost Theegon bus terminal, and 352/3rd milepost Sagaing junction.
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