Govt’s notification to import electric vehicle likely to be released next month
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Khit (NP News) - Sep 27
A public notification on electric vehicle import which will be granted many tax exemptions is possibly released in upcoming October, according to the auto dealer industry.
Electric vehicle policy is primarily inspired by Prime Minister Senior General Min Aung Hlaing. Related notifications to the plan will be released possibly next month after the inspiration was discussed during a series of meetings led by Minister for Defense General Mya Tun Oo.
“We heard that the notification will be released in October. But it isn’t clear if the announcement is granting for import or if it is a policy related to what kind of model or what type shall be imported,” an officer from a car showroom told NP News.
He commented that even if the notification is released in October granting to start the import processes soon, the earliest possible arrival of the electric vehicles will be in January 2023.
However, he continued that those who are personally close or have good relationship with officers from the relevant departments and those who get information leads of the issuing policy might order in advance to import the electric vehicles even before the policy is issued.
“Even if the announcement is released in October that imports are allowed, the possible earliest time to reach in the market will be in January or February since purchasing process will involve ordering, shipment loading, and travelling time until entry to the port. For those who get the policy leads will be able to sell the vehicles in the market as soon as after the announcement is made,” the showroom officer said.
The auto dealers are considering whether the electric vehicles should be imported or not because of the spreading leads about tax relief.
“We’ve heard that there will be many tax exemptions in electric vehicle import. If we import the EVs without thorough consideration or analysis as we are attracted by the enticement of tax exemptions, only used or second-hand vehicles will be arriving in the market. I mean if the EVs are in the market within two or three months after the official announcement, they will be the used ones,” an officer from a car sales center told NP News.
As a matter of fact, the brand new electric vehicles are currently out of stock in the international market and therefore, brand new EVs won’t be logically arriving in Myanmar within a few months.
“The battery is essential in the electric cars. In fact, 70 percent of the car value sits in the battery. The lifespan of the battery in the electric cars have only seven years in general. So, if the car was already used for two years there (in abroad), it will only have five years warranty here. Then, we have to use a new battery after using five years,” an officer from another car showroom told NP News.
Average price floor of a good-quality electric car in the international market is USD 18,000. Therefore, the local customers should think logically if a company declares that it will sell electric cars with an estimated price USD 10,000.
Auto dealers industry demands to have a clear policy which systematically classifies electric car showrooms between brand new and used so that the electric car project won’t be ruined.