Mar 4, 2016

VW Appoints Yoma as Myanmar Importer and Distributor

German automaker Volkswagen AG has appointed a subsidiary of Yoma Strategic Holdings Ltd as the importer and distributor for Myanmar.

Under the importer agreement, YSH’s wholly-owned subsidiary Yoma German Motors Limited will serve as the official importer and distributor of a range of passenger cars and SUVs manufactured by Volkswagen, within Myanmar.

“This appointment will allow us to tap into Myanmar’s fast growing automobile market by offering … passenger cars and SUVs to local customers, further expanding our presence in the automotive industry in Myanmar,” said Melvyn Pun, CEO of Yoma Strategic.

This arrangement expands upon the Yoma’s existing Volkswagen after sales, service and spare parts distribution business which started in October 2013 through a service partner deal. Yoma also currently distributes New Holland’s agricultural equipment, Mitsubishi and Hino vehicles, and Bridgestone tyres.

“The extension of our business relationship with Yoma Strategic to become the official distributor of Volkswagen underscores our commitment for the Myanmar market,” Axel Oberdiek, general manager of Sales, ASEAN and Hong Kong of Volkswagen AG.

Volkswagen, which is Europe’s biggest carmaker, has been embroiled in scandal since September 2015, when it admitted using illegal software to cheat US diesel emissions tests and that up to around 11 million vehicles worldwide could have illegal software installed. In December 2015, its sales dropped 5.2 percent, contributing to the first decline in full-year sales since 2002.

However, with explosive GDP growth and a burgeoning middle class, Myanmar is considered a big growth market for global automotive players. Japan’s Nissan, German luxury carmaker BMW and Mercedes Benz and South Korea’s Hyundai, among others, have all forayed into the market in recent years to tap the opportunities.

Michael Rudenmark, head of automotive for Yoma Strategic, said, “The timing is right to expand upon our existing Volkswagen aftersales business …. We believe that we can emulate our aftersales success at the point of sale, with a range of exciting new models which will be introduced to specifically suit Myanmar’s driving conditions ....”

Rudenmark added Volkswagen will build a 3S facility in Yangon in the future.

Source: Myanmar Business Today