YANGON, Myanmar – Japanese auto giant Nissan will begin assembling cars in Myanmar for the first time this year, the company announced Wednesday (February 17) as it expands its presence at one of Asia’s last economic borders.
Foreign companies have accumulated in Southeast Asia since reforms began in 2011, eager to take advantage of a group of 51. 5 million potential customers.
Nissan said production would begin at a plant run by its Malaysian spouse, Tan Chong Motor Group, before moving to a new plant in Bago, 80 kilometres northeast of Yangon’s grocery shopping center.
The Japanese company announced 3 years ago its goal of building Myanmar’s largest automotive production site.
Two hundred workers will get education in Malaysia for a meeting line in Myanmar that aims to produce 10,000 units, according to one from Nissan.
It is not clear without delay whether all cars would go to the domestic market or whether some would be destined for export.
“Nissan is pleased to have the opportunity to participate in the new automotive expansion in Myanmar,” said corporate Vice President Toru Hasegawa.
Huge import taxes and foreign sanctions against the previous regime meant that cars were too expensive for most people, yet recent adjustments have noticed a sharp increase in demand for four wheels.
Evidence of the explosion of the market of the ancient paria state can be discovered in its streets that were once sleepy, which are now being suffocated by the s.
Nissan began promoting cars in Myanmar in 2013, two years after a political and economic reform package in place to lift Western sanctions, opening the impoverished country to industry and foreign investment after nearly five decades of army rule.
Investors expect Myanmar’s economy to continue to grow under a new government that will be shaped through Aung San Suu Kyi’s prodemocracy next month.
The car manufacturer in Myanmar comes after the company reported a weaker call last week in Thailand and Indonesia, its two main production centers in Southeast Asia.
But the company’s profits still increased last year after sales in North America and recovery symptoms in China.
Japan’s Suzuki is already generating in Myanmar, while American giant Ford Motor has opened a showroom in Yangon – Rappler. com