Myanmar, Thai firms cooperate on auto business

Published on Wednesday, 12 December 2012 20:55

A TSL luxury car showroom in Thailand

Myanmar’s MK Group of Companies has reached an agreement with Thailand’s TSL Auto Corporation to open a car showroom and auto service centre in January next year in Yangon, according to sources in Thailand.

Reports said the construction is 90 per cent complete.

After teaming up with Myanmar-based partners, TSL invested 35 million baht (US$1.14 million) to build the showroom and integrated maintenance and body repair service centre in Yangon.

SMRT Myanmar was set up as a joint venture, with 40 per cent held by TSL and 60 per cent by MK Group.

"We also have a new high-end car distribution business, but concentration will be put on the car maintenance and body repair service," said TSL chief executive Sureeporn Udompolpanich.

Servicing will be provided for imported European car brands, which are very popular in Myanmar.

The chief executive said the joint venture is forecast to earn a revenue of $800,000 annually.

The venture, approved by Myanmar’s government, will enjoy zero tax for machinery and equipment imports for eight years so long as TSL maintains an interest in the joint venture of more than 35 per cent.

TSL Auto Corporation is the largest luxury car importer in Thailand and this is the company's first foray outside Thailand.

Founded 20 years ago, MK specialises in supplying high-end fashion products.