3 June
ALMOST every country has seen severe effects on economy, trade, health and socio-economic life of the people inflicted by global pandemic COVID-19. Also in Myanmar, the government is now striving for the least impacts on employers and employees. When the operation of the factories and plants is looked in Yangon, Suzuki Motor Corporation is poised to inject the capital into establishment of a new auto plant that will conduct welding, painting and assembly of automobiles in Thilawa Special Economic Zone, Thanlyin Township.
Suzuki Motor Corporation, of course, is currently assembling the autos in Thilawa by the system of semi knocked down (SKD) which partially assembled parts of a product are put together. The plant that will be established now will become a new auto one for Suzuki.
Suzuki auto maker has started doing investment in Myanmar since 1998 and manufacturing Suzuki motorcycles and autos in cooperation with the government on a basis of joint-venture since 1999. Now, making an investment of more than US$ 10 million (12 billion yen), Suzuki will build a new automobile plant by completely knocked down scheme which conduct welding, painting and assembly of the autos in Thilawa Special Economic Zone.
The previous factory imported auto parts of Suzuki and assembled autos by SKD. But the currently-invested auto plant will manufacture automobiles from beginning to end at the same place.
The newly-established auto plant is expected to start operation in September of 2021 with the production of Suzuki automobiles. Although the COVID-19 outbreak is having effects on construction industry locally and globally, the construction of the auto plant will go on until new automobiles are manufactured.
Auto available at reasonable price in Myanmar
Suzuki auto plant has already had its original plan hoping that it manufactures about 40,000 autos a year starting from September in 2021, according to the official release of Suzuki Auto Company. If the company continues keeping up this production rate, the auto market will become more competitive. On the other hand, the people will get opportunities of affording the autos at reasonable prices.
Suzuki auto maker will produce new automobiles by completely knocked down scheme which conduct welding, painting and assembly of the autos in Thilawa Special Economic Zone which will provide new job opportunities. The youths will find more employment and they will come to know by learning how to produce the auto from start to end. If Suzuki produces an auto from start to end by CKD system, other auto companies in Japan will later follow. The Suzuki, of course, already had a plan of producing autos by SKD system and also has a project to manufacture autos from start to end by CKD system when the designed period comes. But investments may see the situation that cannot carry out the implementation due to some changes and difficulties in the project. However, the implementation of the company is in progress as the investment has been made.
Suzuki auto maker has started doing investment in Myanmar since 1998 and manufacturing Suzuki motorcycles and autos in cooperation with the government on a basis of joint-venture since 1999. Now the investment in the auto manufacturing Suzuki made amount to US$ 35million. Suzuki has achieved good market shares in the automobile market of Myanmar. The Suzuki auto brands such as Carry, Ciaz, Ertiga and Swift are being assembled and manufactured in the auto plants in Dagon Myothit (South) and Thilawa SEZ. Suzuki (Myanmar) Motor Co., Ltd and Suzuki Thilawa Motor Co., Ltd made full investment in Suzuki auto plant establishment and manufacturing sector.
Suzuki auto brands and prices can be opted
The investments the auto companies from Japan made in Myanmar ensure extensive local and foreign markets and good opportunities in the development of economy and trade. Also in local auto market, the people will have to choose auto brands, prices and services. Suzuki manufactured 13,300 units from the auto plants in Dagon Myothit (South) and Thilawa during 2019 and sold out 13,206 units, revealed in the official release of the company. The number increased by 128 per cent compared to that of 2018.
Toyota, one the Japanese auto makers, has made investment in Thilawa Special Economic Zone and is manufacturing autos by SKD system which auto parts are being imported and cars assembled. At such a time, the auto plant of Suzuki is under construction and in the near future those wishing to buy autos will have a variety choice between Toyota and Suzuki and auto market will be a robust competition.
Now is the time all businesses facing all forms of difficulties affected by COVID-19, but the investments of Japanese auto makers will be some kind of power not only for economy but also new employments beyond COVID-19.
By Zin Lin Myint
Translated by Htut Htut (Twantay)
