SINGAPORE - Mainboard-listed Yoma Strategic Holdings announced on Wednesday (Dec 16) a 50:50 joint venture with Mitsubishi Corp to distribute the Japanese cars in Myanmar.
The joint venture company, MM Cars Myanmar Ltd, will be responsible for the distribution (wholesale), retail sales, after-sales services, and maintenance services of Mitsubishi cars and spare parts.
It will also take over the running of two Mitsubishi Motors After-Sales Service Centres set up in 2013 and currently being operated by Yoma. The joint venture will also operate the first Mitsubishi Motors showroom in Yangon, which opened on Tuesday.
Said Mr Melvyn Pun, Yoma Strategic CEO: "The joint venture with Mitsubishi Corporation formalizes our collaboration in developing the Mitsubishi Motor business in Myanmar over the past year."
"Our automotive segment is experiencing strong growth, and we are confident that the Mitsubishi Motors business will contribute meaningfully in the medium term."
Yoma said that since the Myanmar government announced a relaxation of vehicle import regulations in 2011 as a part of its "democratisation" 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 with the Myanmar government announcing the approval of new vehicle imports and sales by joint ventures established between Myanmar and foreign companies, the company said. These developments are expected to generate further growth in the Myanmar vehicle market, it said.
Yoma Strategic already has several partnerships with Mitsubishi Corporation, including an elevator related business, a tyre business and the operation of the Mandalay International Airport.