Mainboard listed Yoma Strategic Holdings has entered into an agreement with Volkswagen Aktiengesellschaft (VW) to operate the automobile giant's first service centre in Yangon, Myanmar.
Post-sale services for VW branded vehicles will be provided through Yoma's 70 per cent-owned subsidary, German Car Industries Company (GCI), it said on Wednesday.
"The partnership agreement will make Yoma Strategic's subsidiary, GCI, an official maintenance and repair servicing centre for Volkswagen, said Mr Michael Rudenmark, managing director (automotive).
"It also allows GCI to give its customers a warranty on VW's spare parts and components."
This non-exclusive service partnership is an extension of Yoma Strategic's main business of property development in Myanmar.
Mr Rudenmark also told The Straits Times: "Although majority of the cars in Myanmar are of Japanese brands, the rising affluence and disposable income among the Myanmarese will drive the demand for European vehicles."
Yoma Strategic's chief executive Andrew Rickards said: "Seizing such important opportunities is especially important since Myanmar has the potential to become one of the most important automobile markets in the Asean region following the deregulation of (car imports)."
"Although this is a non-exclusive operation, Yoma Strategic has a head start in building our relationship with VW, which will help us to better serve our new customers."
Its shares closed down 1.9 per cent to 76.5 cents.