According to sources in the automobile trading community, the market prices of some vehicles assembled under the Semi Knocked Down (SKD) system are around K200 million to K300 million higher than their factory prices, with some being sold at two to three times their factory prices.
The prices of Japanese- and South Korean-branded vehicles manufactured and assembled domestically under the SKD system differ significantly between factory and market prices. Meanwhile, Chinese-branded vehicles are also being sold on the market at prices around K100 million to K150 million higher than their factory prices, according to sources in the automobile trading community.
The fact that SKD vehicles are being sold at two to three times their factory prices has also drawn criticism of the SKD system on social media.
“Since SKD vehicles do not really benefit consumers, I would like the relevant authorities to review in a timely manner who is actually benefiting from the system,” a social media user named Kyaw Soe Moe wrote.
“The purpose of the SKD system is to promote domestic automobile manufacturing and industrial development, create more employment opportunities locally, and enable people to own and use vehicles at affordable prices. Support is provided to SKD manufacturers, including tax reductions, and foreign currency is also sold to them through separate arrangements. However, the public is not benefiting from any of these measures at all; instead, the situation has become even worse. For example, a Suzuki vehicle sold at K115 million is currently costing around K300 million in the market. This is not just a slight increase. The same vehicle would cost less than K100 million in Thailand. Yet although it is sold at K115 million at the factory, the public cannot buy and use it at that price and instead has to pay around K300 million. That is clearly excessively expensive. The public is not benefiting from the SKD system; instead, things have become worse. It is like trying to make things lighter but making them even heavier. The government has provided various forms of support to develop the SKD sector, including tax and other concessions. However, not only are the public unable to enjoy the benefits, they are effectively suffering three times over,” a vehicle trader said.
There are also cases in which vehicle allocation slips are purchased and resold at a profit in the external automobile market.
“If a vehicle slip is worth around K60 million, some people are reselling it for around K100 million. There are cases where they transfer and resell the slips at a profit of around K40 million even before the vehicle is obtained,” a veteran automobile trader said.
At present, the factory price of the SKD-produced Toyota Travo is around K280 million, while its price in the automobile market is around K550 million, according to market sources.
Similarly, the factory price of a Suzuki Ertiga is around K100 million, compared with around K300 million in the market. The factory price of a Ford Everest is around K650 million, while its market price is around K850 million. The factory price of a KIA Sportage 2026 X Line is around K400 million, but it is being traded at more than K500 million in the market, according to automobile trading sources.
Meanwhile, the factory price of the Chinese-made SKD Leapmotor B10 is around K135 million, compared with around K225 million in the market. The BYD Atto 3 has a factory price of around K169 million, while its market price is around K255 million, according to sources in the automobile trading market.
Regarding the higher market prices of SKD vehicles compared with their factory prices, Kyaw Gyi MDY said the Ministry of Commerce should take action to make the system more convenient for the public.
“The main point is that automobile factories and vehicle manufacturing are matters of national importance. There is no transparency over whom the vehicles are officially sold to. They are simply allocated to designated dealers. They are not sold directly to consumers but are placed in the hands of people who speculate on prices There should be transparency in the process. For example, if 50 vehicles can be produced in a month, there should be a system showing that all 50 vehicles have been sold to the public. But when consumers want to buy them, they may not be able to get one even after waiting for another three years. If they are willing to pay an inflated price, however, they can get one immediately. This is something the Ministry of Commerce should address. If a factory sells a vehicle for K110 million, there is no clear information on how many vehicles are sold directly to the public. Instead, they are placed in the hands of people who make money from them. If around 30 vehicles are produced, they buy and keep all vehicles, and then resell them at higher prices. In effect, this creates a black market. Vehicles should be sold directly to the public. When this happens, no one dares to interfere because people are making money from it. Now that a Suzuki Ertiga is being sold for K285 million to K300 million, how can an ordinary employee afford to buy one? Since SKD is a system under government oversight, it should be properly regulated and supervised by the government,” he said.
Kyaw Gyi MDY also called for SKD and automobile policies to be amended as soon as possible and said the system should not be designed to benefit only a small group of people.
“These automobile policies need to be thoroughly reviewed. If we buy a brand-new Suzuki Ertiga with a license in Thailand, we would not have to pay even K100 million. It should not be the case that people in our country now have to pay K300 million for the same vehicle. The Ministry of Commerce should thoroughly review both the SKD policies and the current vehicle import policies. The SKD system has been in place for a long time. Has it actually produced benefits? We need to examine whether this policy has produced results for the country and the people. At present, it is benefiting only a small group. It should not be designed to benefit a handful of people. State policies should serve the interests of the country and the people,” Kyaw Gyi MDY said.
Vehicles currently manufactured and sold in Myanmar under the SKD system include Japanese brands such as Toyota, Suzuki and Nissan; South Korean brands such as KIA and Hyundai; US-made Ford vehicles; and Chinese brands such as Soueast, Changan, GAC and Geely, among others.
