Demand for secondhand cars dominate over that of brand new cars in Myanmar’s automobile market due to price sensitivities and tax differences, auto dealers say.
“Among used and new cars, used cars are more widely used. Brand new cars are more expensive and higher taxes are imposed on them so only a few can access them. Price is a major factor for Myanmar’s car buyers so low-cost cars are the most in demand,” Dr Soe Tun, director of Farmer Auto showroom and president of the Myanmar Automobile Manufacturers and Distributors Association (MAMDA), told Myanmar Business Today.
The price gap is the main reason for the low demand for high-end new cars. Secondhand Japanese cars enjoy the highest demand especially Toyota’s doublecab models and Hiace models that have high passenger capacity, essential in the present market, U Aye Tun, joint secretary of MAMDA, told Myanmar Business Today.
The demand for used cars is high as the economy is still underdeveloped. Showrooms selling new cars expect the market for new cars will grow proportionately as the economy develops, as buyers can easily research and learn about strengths and weaknesses of new models.
U Khin Tun, managing director of Capital Automotive Ltd that imports Ford branded vehicles, told Myanmar Business Today that new cars have many advantages over used cars on the long run adding that the demand will rise as the economy further develops.
He said, “In other countries, buyers seek new cars. While old cars are economical new cars can guarantee safety. New cars have advantages such as much lower fuel consumption, greater convenience and higher efficiency. Old cars are cheap as they are not wanted in other countries. There are a lot of risks when people have to buy without knowing the actual conditions of the vehicles.”