Japanese carmaker Suzuki Motor has been granted the approval from the yanmar government to establish a new production plant in the southeast Asian country.
Suzuki plans to invest about $7 million in its plant located in the Thilawa district, Yangon, to start the production of compact trucks. The automobile manufacturer plans to expand automobile production and sales in Myanmar as the country’s infrastructure development advances in line with the economic liberalization.
In 2010, the company had suspended its production at the plant. With Myanmar, Suzuki has a similar approach with India, where the company entered decades before it became one of the fastest-growing markets in the world. Suzuki is now the No. 1 carmaker in India.
Myanmar is beginning to open its markets and economy to outside investors but currently there’s almost no market for new cars. However, demand for second-hand vehicles is strong. Suzuki’s plant will make only 1,200 vehicles a year in the first phase.
Suzuki will unveil the series model of its C-segment crossover at the upcoming 2013 Geneva International Motor Show that will be held from March 5-17. The crossover model comes with 4-wheel-drive technology and will be based on the S-Cross concept car that was introduced at the Paris Motor Show in September 2012.