Mitsubishi Corp (MC) has entered Myanmar’s tyre market through a new joint venture company with property and agriculture firm Yoma Strategic Holdings Ltd.
First Japan Tire Company Limited (FJTS) will provide Bridgestone tires in Myanmar with sales support to help the local tyre sector keep up with the country’s growing car servicing demand, the firm said.
MC entered into an agreement with Myanmar Motors Pte Ltd to establish the joint venture. It will hold 70 percent of shares while 30 percent will be held by Myanmar Motors Pte Ltd.
Myanmar Motors is a subsidiary of Yoma Strategic Holdings Ltd and First Myanmar Investment Co Ltd, which are part of the local conglomerate Serge Pun & Associates (Myanmar) Ltd.
MC and SPA Group signed a deal in October last year to jointly explore business opportunities in Myanmar, including automotive service and elevator-related businesses.
The Japanese conglomerate said its decision to enter the tire business in Myanmar is based on the projection that demand for tires will grow in keeping with growth in the automotive market and that its business endeavours will contribute to the improvement of infrastructure.
MC and Bridgestone, the world’s top tyre maker by market share, already have a series of tire manufacturing and sales joint ventures in Southeast Asia, particularly in Thailand, Vietnam and Malaysia.
The firm said the new venture will draw on the know-how that MC has accumulated in the industry to provide sales and marketing support to SPA Group’s distributors that meets the needs of the local market and expand the sales of Bridgestone tyres – mainly for passenger cars, trucks and buses – in Myanmar.