The Ministry of Commerce has announced a plan to replace vehicles that are more than 20 years old, vehicles that can no longer be safely repaired, and vehicles under 20 years old whose owners voluntarily apply for trade-ins, with electric vehicles (EVs).

The announcement was issued on May 28 regarding the cancellation of old and used vehicles and the importation of electric vehicles.

According to the ministry, aging and deteriorated vehicles consume excessive fuel, waste public funds, increase the risk of accidents due to weakened vehicle conditions, and contribute to environmental pollution through excessive smoke emissions. Therefore, such vehicles, along with unrepairable vehicles and voluntarily surrendered vehicles under 20 years old, will be eligible for replacement with EVs based on the assessed value of the old vehicle.

The Ministry of Commerce stated that owners who submit a scrapping vehicle approval form (D) issued by the Road Transport Administration Department will be allowed to apply for an EV replacement. The National Steering Committee for the Development of Electric Vehicles and Related Industries will review and approve EV imports, while the Central Bank of Myanmar will arrange the sale of foreign currency at a reasonable rate for the import process.

According to some vehicle dealers, the Ministry of Commerce said it will assist owners of vehicles that are over 20 years old, vehicles deemed unsafe for road use, and owners wishing to individually import EVs in exchange for their existing vehicles even if those vehicles are less than 20 years old, while the previously established policy on old vehicles remains unchanged.

In Myanmar, there are an estimated 100,000 to 200,000 vehicles manufactured before 2006. Replacing these vehicles with EVs would require at least four billion dollars, based on a minimum cost of 20,000 dollars per EV. However, there are also opinions that such a plan is not practically feasible due to the foreign currency requirements involved.

It is also reported that the policy issued by the Road Transport Administration Department regarding the cancellation of old vehicles remains unchanged to date.