Asia's next boom market? Former pariah Myanmar

BANGKOK, Thailand -- Proud locals call Thailand the "Detroit of the East" because their country is the auto juggernaut of Southeast Asia.

But the economically booming region's new darling market is the former pariah dictatorship next door, Myanmar.

Ford is among those rushing into the newly open -- but exceedingly poor -- country, hoping to ride a road to riches. In mid-August, the U.S. carmaker opened its first dealership there in Yangon, the country's biggest city and commercial hub.

Make no mistake: Ambitions are meager for now, reflecting the fact that the country just emerged from decades of military oppression.

Per-capita gross domestic product is only $1,400, below that of even North Korea and around a tenth that of neighboring Thailand.

Yet Ford has already sold about 100 vehicles, mostly Ranger pickups, and 70 more are back ordered, spokesman Neal McCarthy said.

Weekly traffic at the 28,000-square-foot dealership has averaged around 120 people, even before its ceremonial grand opening on Oct. 4. It has a 12-vehicle showroom and 12-vehicle service bay.

Ford also aims to sell the F-series pickup and Taurus sedan. The Myanmar market is so new there is hardly any data about local buying habits or consumer trends.

"There's no data," said Matt Bradley, president of Ford's operations in the Association of Southeast Asian Nations, a bloc of 10 Southeast Asian countries.

"We'll have an assortment of small, large and medium cars, trucks and utilities, and we'll see what the customer wants," he said.

Military rule just ended in 2011. Washington began relaxing sanctions against the country this year, finally opening the door for foreign businesses to invest more freely.

"It's early, and we certainly see the opportunity to support and serve customers," Bradley said. "It's a hot news topic. We're excited to be one of the first brands there."

Partly because the country has so many people -- with 55 million souls, it ranks among the world's top 25 most populous nations -- Ford has plenty of competition trying to tap its potential.

Mercedes-Benz, General Motors, Mazda and Hyundai are among those also expected to start local sales. And others are eyeing even bigger commitments.

Suzuki has already received approval from the Myanmar government to restart production at a plant it had earlier shuttered.

And Nissan announced Sept. 20 it plans to start making the Nissan Sunny small car there in 2015. It will be assembled on a knockdown basis, with a volume of 10,000 units a year.

The 80-acre industrial complex Nissan will build with its local partner, Tan Chong Group, will be the largest automobile manufacturing site in Myanmar, Nissan said.

"We are confident," said Nissan CEO Carlos Ghosn, "that Myanmar will be an important economic engine for the region and are committed to help develop its automotive industry."

source: Automotive News
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