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New 7-seater Avanza launched in Myanmar

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The new Avanza comes with a 3-year or 100,000 kilometre guarantee and extensive after-sales assistance from Toyota Myanmar authorized Dealership. The Avanza is $19,500, which is lower than the Vios, which is $20,000. "We have made the Avanza accessible to our customers," said U Myo Myint Thein, CEO of Toyota Aye and Sons Co.

The Avanza will compete directly with the Suzuki Ertiga at the present prices. But Suzuki now has a lead over Toyota. Since the company assembles its cars in a Yangon plant, all Suzuki purchasers receive sought-after Yangon licences as part of a state stimulus for FDI.

"Toyota does not allow its Toyota clients to obtain Yangon licences. On this front we could encounter some difficulties," said U Myo Myint Thein. Although Toyota is the most common model in Myanmar, there is no plant in the state.

"Yangon licences are not yet available to automotive distributors like Toyota. Whilst we are unsure how clients will be choosing between Avanza and Ertiga, Toyota has a great deal of market value in Myanmar because of its quality," said U Myo Myint Thein.

The new regulations on imports cause the price of cars to skyrocket

According to sector watchers, the price of cars will even go up by 100 per cent for some of the most famous of them. This growth is a result of rulings by the German federal administration on the import schemes for the next year. The Ministry of Commerce on 30 November published the number of years and the number of vehicle types that can be introduced from 1 January next year.

Predicted in many cases, the imports of older and right-hand driven automobiles that are not suitable for legal driving in Myanmar are becoming more and more tight. You can only buy lefthand driven automobiles since 2015. Automakers say the dual limitation will boost the price of registered automobiles, and have already sent increasing rates for mass-produced automobiles that will only stay registered for the rest of this year.

Pre-December's run on imports of cars from Japan more than doubles the Japanese dollar value of imports, said U Min Min Min, Wun Yan Kha Auto Dealer. Meanwhile, the prices of these cars, once they enter the Myanmar markets, have continued to rise.

"In Myanmar, the prices of similar automobiles have risen from K1.3 million to K3 million in a day or two," he said. As they will be more costly, Ko Aung Naing Htun is expecting a follow-up effect when drivers who sell their present car ask for K2 or K3 million more to meet the higher costs of an expansive new model.

It was U Min Min Min Maung who said that those who own a vehicle for their own use only should not be selling it - the authorities have made it hard for those in Yangon to buy new one. Prices for automobiles on the domestic markets are also expected to increase. Usually a few years ago, a model that was already in use in Yangon, but anyone who was planning to buy a used vehicle in Yangon should do so now, he added, and recommended styles dating back to 2005 to 2008, among them Honda CRV, Toyota RAV4 and Toyota Kluger.

However, he said that the purchasers would decline to agree to more than a leap in value of K5 million. Others said that in search of a vehicle with a value of $30,000 to $60,000 for costs, insurances and cargo, it would be wise to await your arrival and await changes in the world. Following the import surge before 1 January, the markets will calm down and traders will begin to value their stocks.

Subsequently, some of them will begin to reduce the prices, the retailers forecast. They said up to 10 such cars could be resold for K4 to K10 million below the initial purchase cost, as center holders discharge their inventories after the first few moths of 2017.

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