Japanese auto giant Toyota has opened a new service shop, Mingalar Motor Co Ltd (MGM), in Yangon.
MGM, which will provide genuine Toyota aftersales services, was established as a joint venture between Japanese trading firm Mitsui & Co, Thai conglomerate Siam Cement Group’s subsidiary SCG Trading Co Ltd and local firm Oriental Apex Car Sales & Services (OAC).
The new vehicle sales wing of the business is conducted through OAC due to restrictions in Myanmar which only allow local companies to conduct new vehicle sales, Mitsui said in a statement.
With a population of more than 50 million and a GDP growth rate of around 7 percent, Myanmar is becoming an increasingly attractive market for global auto firms. This year, new car inventory sales were launched by domestic firms, and the market is expected to grow rapidly.
The total number of vehicles registered in Myanmar, including used vehicles, is estimated at around 400,000, and demand for aftersales services is on the rise. In response to these conditions, Mitsui said it is looking to actively enter the Myanmar automotive market, and plans to use this business as a first step.
Mitsui began doing business in Myanmar in the 1990s, and has conducted several power and infrastructure investment projects, making it the largest Japanese investor in Myanmar.
