Market Overview

Distributor for Mitsubishi Motors Corporation Automobiles Established in Myanmar


MMCM showroom being constructed in Yangon
TOKYO, Dec 15, 2015 - (JCN Newswire) - Mitsubishi Corporation (MC) is pleased to announce the establishment of a new joint venture company, MM Cars Myanmar Limited (MMCM), with Yoma Nominee Limited (YNL), for the distribution (wholesale), retail sales, after-sales services, and maintenance services of motor vehicles and spare parts manufactured by Mitsubishi Motors Corporation. YNL is a part of Serge Pun & Associates (Myanmar) Limited enlarged group of companies (SPA Group). MMCM will start operations once the necessary licenses for doing business in Myanmar have been approved.

MC and YNL will each hold 50 per cent shares in MMCM, and it will serve as the official distributor of automobiles manufactured by Mitsubishi Motors Corporation. The joint venture will also provide sales and after-sales services, including the establishment of a showroom and spare parts warehouse in Yangon.

Since the Myanmar government announced a relaxation of vehicle import regulations in 2011 as a part of their democratization policy, the number of used vehicles from Japan has seen a notable increase, making Myanmar the number one destination for used vehicles from Japan in 2014. Import regulations for new vehicles have also been gradually eased since 2012 and in 2015 the Myanmar government announced the approval of new vehicle imports and sales by joint ventures established between foreign companies and Myanmar local companies. These developments are expected to generate further growth in the Myanmar vehicle market.

Until the establishment of MMCM, SPA Group companies had been providing after-sales services to MMC's existing customers through service shops set up in Yangon in May 2013, and in Mandalay in December 2013. With the establishment of MMCM, MC aims to further increase new motor vehicle sales and improve customer satisfaction through the enhancement of after-sales services in Myanmar.

MC has strategically positioned Myanmar as one of its key targets among emerging markets and is jointly exploring business opportunities in Myanmar together with Yoma Strategic, including an elevator-related business, a tyre business, and the operation of Mandalay International Airport. Drawing on the experiences and know-how cultivated in the ASEAN region, MC is seeking to contribute to the further development of the automotive industry in Myanmar, particularly in the vehicle distribution business.

About Mitsubishi Motors

Mitsubishi Motors Corporation is the fifth largest automaker in Japan and the fifteenth largest in the world by global unit sales. It is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries.

Throughout its history it has courted alliances with foreign partners, a strategy pioneered by their first president Tomio Kubo to encourage expansion, and continued by his successors. A significant stake was sold to Chrysler Corporation in 1971 which it held for 22 years, while DaimlerChrysler was a controlling shareholder between 2000 and 2005. Long term joint manufacturing and technology licencing deals with the Hyundai Motor Company in South Korea and Proton in Malaysia were also forged, while in Europe the company co-owned the largest automobile manufacturing plant in the Netherlands with Volvo for ten years in the 1990s, before taking sole ownership in 2001.

Source: Mitsubishi Motors

Public Relations Department 

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