Myanmar's automobile industry is very backward. There are no automobile manufacturing plants in Myanmar, only automobile assembly plants. More than 80% of domestic vehicles are used cars, and the vast majority of imported cars are used cars. At present, only Japanese auto parts are imported, not China parts. Most of the imported parts are old, and only the wearing parts are new. 80% of imported parts are old parts, which are used to assemble their own cars after polishing and cleaning. Myanmar's Ministry of Secondary Industry is the competent department of Myanmar's automobile industry. Myanmar does not allow private enterprises to produce cars, but is strictly controlled by the Ministry of Second Industry. At present, there are three state-owned and public-private joint-venture automobile assembly plants in Myanmar, namely, Myanmar Automobile and Diesel Engine Production Company under the Ministry of the Second Industry, Myanmar First Private Investment Co., Ltd. (FMI), Japan Suzuki Company, Myanmar Economic Holding Company and Japan Isuzu Company. The parts of the above-mentioned automobile manufacturers are all imported. What needs special introduction is Myanmar Automobile and Diesel Engine Production Company (MADI) under the Ministry of Second Industry of Myanmar, which consists of five companies: No.1 Automobile Factory (producing 6.5-ton trucks, water tankers, wood trucks and oil tankers; Gearbox, transmission system and bearing of truck; Epicycloidal gear drives, leaf springs and spiral springs for automobiles and trucks, and pressed metal plates; Screws and nuts; General engine group, etc. ) No.2 Automobile Factory (producing 4WD off-road vehicles/jeeps; XVA44L, EW- 1 and SW-II cars; Gasoline engine (2000 cc); Truck's diesel engine DS-70 (140 HP); Pistons and piston rings of gasoline and diesel engines; General engine group, etc. ), No.3 Automobile Factory (under planning) and Auto Parts Factory (established through technical cooperation with China Machinery Import and Export Corporation), the main products produced are radiators, impellers, metal bearings, intake and exhaust valves, spherical bearings, castings, etc. ) and heavy-duty diesel engine factory (under planning). The other company is Myanmar Tire and Rubber Production Company (MTRI), and 1979 was established by importing machinery and equipment from the former Czechoslovakia. It is the only manufacturer in Myanmar that produces all kinds of tires such as cars, trucks, buses, tractors and bicycles, and also produces all kinds of pipeline products. Its product range includes passenger car/light truck tires and pipes, truck tires and pipes, tires and pipes for agricultural machinery and equipment, and bicycle rims. It is located near the rubber production park in Myanmar, so the supply channels of natural rubber are smooth, but other raw materials such as synthetic rubber and other chemical products are completely dependent on imports.

Myanmar welcomes the export of China products. In Myanmar, only companies with export-related rights can declare import rights. There are two kinds of imports: (1) 100 dollars of foreign exchange can import 80- 100 dollars of products; (2) 100 USD of foreign exchange can only import 20 USD of products. The first case is mainly aimed at Class A products urgently needed and urgently supplied by the country, which belong to project import and can enjoy import preferential treatment. Auto parts products, such as tires and engines, belong to this situation, with extremely low tariffs and almost no tariffs. Myanmar is willing to import cars and auto parts from China for three reasons: (1) All of them are left cab; (2) good quality; (3) low price.

There are two forms of investment in Myanmar, one is Chinese 100% sole proprietorship, and the other is Sino-Myanmar joint venture. Myanmar said that as long as both sides abide by the foreign investment law of the Union of Myanmar, they can make investments with the consent of the Myanmar Investment Committee and the approval of the Myanmar government. At present, the Myanmar government is very supportive of the automobile manufacturing industry. After the exchange of visits between the Chinese and Myanmar governments, they decided to establish a development zone or industrial park near Yangon specifically for China, and formulated some preferential policies for the automobile manufacturing industry. Myanmar's localization requirements for automobile spare parts production are: some spare parts are allowed to be imported in the first year, half-assembled (SKD) within one year, and whole-assembled (CKD) within three years without VAT and customs duties; After that, while importing parts from abroad, we will increase the localization rate year by year and achieve 60% localization rate within five years; But if these vehicles can be exported to foreign markets, the localization rate can be reduced. In addition, Myanmar hopes that the cars and auto parts jointly produced by the two countries will be supplied to Myanmar's domestic market first, and then exported to other countries after ensuring the domestic market demand in Myanmar.