Industry Trend Analysis - SC Auto Production Adds Competition To Local Bus Market - AUG 2017

BMI View : SC Auto ' s plan ned bus production facility in Myanmar will add competition to the country ' s local bus manufacturing industry and allow the company to be closer to its customer base. Growth in the domestic bus market will be driven by low incomes and car ownership rates as well as the development of transport networks which will create demand for public transport solutions .

In June 2017, Singapore's largest bus manufacturer SC Auto announced plans to set up a SGD30m (USD21.6mn) bus production facility in Yangon, Myanmar, in partnership with trade development agency International Enterprise Singapore. The new plant is expected to begin production in Q418, with the aim of producing over 100 buses in its first year. SC Auto will be looking to meet growing bus demand in both Myanmar and the South East Asian region.

SC Auto currently exports its buses to Myanmar and we expect that its move to produce vehicles locally will allow the Singaporean bus maker to be closer to its customer base and to respond more quickly to their needs. The launch of this new production facility will also add competition to Myanmar's local bus manufacturing industry with Myanmar Motor Corporation Public Company having announced at the beginning of 2017 that it had received approval to start assembling buses in the country ( see ' Growing Tourism And Low Car Ownership To Support Bus Assembly Plans ' , January 12).

Growth In Local Bus Production Provides Upside Risk To Fleet Expansion
Myanmar - Bus And Coach Fleet Size, Units
e/f = BMI estimate/forecast. Source: AJTP, BMI

This article is part of our Asia coverage. To access this article subscribe now or sign up for free trial