Yoma kicks off Volkswagen service center operations in Yangon

Analyst predicts limited financial impact on Yoma.

According to OCBC Investment Research, Yoma reported that it will operate Volkswagen’s first service center in Yangon, Myanmar, which is expected to begin operations in Oct 13. 

Yoma’s 70% owned subsidiary, German Car Industries Company (CGI) will enter into a service partner agreement with Volkswagen Aktiengesellschaft (VW) to provide maintenance and repair services and sell genuine vehicle parts to VW automobile owners.

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We understand that the automotive market in Myanmar is currently dominated by Japanese cars and that VW currently has no manufacturing facilities or car show room in Myanmar, and hence this agreement is expected to have limited financial impact for Yoma over the near term.

That said, we see this further strengthening the growth potential of the group’s automotive division which, together with a similar service agreement with Mitsubishi earlier, is one that is steadily growing – particularly so given that VW is a significant global player with a strong brand.