Japan’s Mitsubishi Corporation and Singapore Stock Exchange-listed Yoma Strategic Holding Ltd have set up a joint venture to distribute Mitsubishi automobile and provide services in Yangon, according to a press release.
MM Cars Myanmar Limited (MMCM), a 50-50 joint venture between the two firms, will handle the wholesale distribution, retail sales, after-sales services, maintenance service of motor vehicles and spare parts of Mitsubishi Motors Corporation.
“The joint venture with Mitsubishi Corporation formalises our collaboration in developing the Mitsubishi Motor business in Myanmar over the past year. We are excited that our new showroom, alongside with our service centres will deliver a high standard of services to our customers,” said Melvyn Pun, CEO of Yoma Strategic.
Yoma’s investment in the joint venture will be made through internal accruals. The issued and paid up share capital of the joint venture is $8,000,000 comprising 8,000,000 ordinary shares of $1 each, Yoma said in an SGX filing.
Yoma Strategic set up two after-sales service centers in Yangon in May 2013 and MMCM will handle these service centers as well as the new showroom.
The showroom currently has a display area for five cars, a modern workshop and a spare parts store.
Used cars of Mitsubishi has been running in Myanmar, where Japanese automobiles have been popular, for the past several years. Since 2012, the government announced the approval of new vehicle imports and sales by joint ventures. “These developments are expected to generate further growth in the Myanmar vehicle market,” stated the press release.
Yoma Strategic Holding has several partnerships with Mitsubishi Corporation, including an elevator related business, a tyre business and the operation of the Mandalay International Airport. It is present in many strategic business in Myanmar along with its affliate SPA Group.