March 17, 2017 3:40 am JST

Malaysia's Tan Chong to expand Nissan sales network in Myanmar

Dealerships will be raised to 15 by 2022

MOTOKAZU MATSUI and TOMOMI KIKUCHI, Nikkei staff writers

Lines of cars are seen near the Sule Pagoda Sule Pagoda roundabout, Yangon, Myanmar. © AP

YANGON, SINGAPORE -- Malaysian automobile manufacturer and distributor Tan Chong Motor group will ramp up its presence in Myanmar, quintupling its network of dealerships to 15 by 2022.

The group will offer vehicles from its partner Nissan Motor and aims to capture more than 20% of the new-car market in the burgeoning Southeast Asian country, where dealers expect growth in new-car sales, propelled by a shift from used vehicles.

The Myanmar government has adopted a policy to curb used-car imports, encouraging growth of the the new-car market, which now stands at around 5,000 units a year.

Tan Chong currently operates three Nissan dealerships in Yangon and elsewhere. The company's plans call for opening two dealerships a year around the country, including in the southern city of Pathein, according to the company official who overseas the operations in the country,

Tan Chong has been selling Nissan cars in Myanmar since 2013. In addition, it began assembling the Sunny model at a local plant last year. It also plans to bring on line an assembly plant in the central Myanmar city of Bago.

Tan Chong's automobile history goes back to the 1950s, when the Malaysian company got involved in auto sales. Currently, the group offers vehicles from Nissan and France's Renault. It runs two assembly plants in Malaysia, with a combined annual output capacity of 100,000.

Since the turn of the century, the Malaysian auto group has moved overseas, setting up an assembly plant in Vietnam. In 2010, it won the exclusive distribution rights to Nissan vehicles in Cambodia and Laos. In 2014, it struck a partnership with Kawasaki Heavy Industries to sell Kawasaki motorcycles in Vietnam. It currently operates dealerships there. 

Nissan Motor Co., Ltd.

Japan

Market(Ticker): TKS(7201)
Sector:
Industry:
Consumer Durables
Motor Vehicles
Market cap(USD): 43,238.54M
Shares: 4,220.71M

Kawasaki Heavy Industries, Ltd.

Japan

Market(Ticker): TKS(7012)
Sector:
Industry:
Producer Manufacturing
Industrial Conglomerates
Market cap(USD): 5,162.07M
Shares: 1,670.80M

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