Myanmar Regime Pushes EV Trade-In Plan Benefiting Junta Family Firms

Myanmar’s pseudo-civilian regime on Thursday introduced an electric vehicle (EV) trade-in plan requiring owners to swap aging or poorly maintained combustion-engine vehicles for EVs—a market dominated by the children of coup leader-turned-president Min Aung Hlaing.

Enforcement of the scheme comes less than two months after regime boss Min Aung Hlaing unveiled the plan during a regime meeting on securing fuel supplies, held at the National Defense and Security Council office in Naypyitaw in early April.

In a statement released by its Ministry of Commerce on Thursday, the regime criticized non-electric vehicles as a drain on public resources due to what it said was their excessive fuel consumption, tendency to cause traffic accidents due to poor roadworthiness, and environmentally damaging emissions.

According to the statement, all vehicles over 20 years old, and those deemed unfit for safe use, are required to be surrendered. However, it remains unclear whether the rule will be strictly enforced or if owners will be allowed to continue using such vehicles, as was the case under U Thein Sein’s previous quasi-civilian government.

The regime said motorists who own vehicles that are less than 20 years old could surrender them voluntarily.

The ministry said owners who trade in vehicles under the plan will be granted permission to import one suitable EV as a replacement, depending on the type of vehicle surrendered.

It added that the Central Bank will sell owners the foreign currency required to purchase an EV, at a reasonable rate.

Min Aung Hlaing’s son Aung Pyae Sone and daughter Khin Thiri Thet Mon control the lion’s share of Myanmar’s EV market, which is dominated by Chinese brands.

The regime has banned or severely restricted the import of standard combustion-engine vehicles, claiming it seeks to prevent the outflow of foreign currencies though unnecessary imports.

However, the regime heavily promotes and allows the import of China-made EVs. The EV sector has become one of the most lucrative revenue streams for the former senior general’s family.

Aung Pyae Sone and Khin Thiri Thet Mon are Myanmar’s second- and third-largest EV importers respectively, collectively importing over 1,200 vehicles from China as of May 2024.

Aung Pyae Sone is the exclusive importer of Chinese BYD EVs, shipping 671 vehicles by May 2024. He also controls MG imports alongside a tight circle of elite military cronies and tycoons, including Htet Yae Naung (son of current military chief Ye Win Oo), Okkar Aye (son of ex-quartermaster-general Tin Aye), Ye Kan Zaw (son of current regime Finance and Revenue Minister Kan Zaw), Kyi Thar Han (son of retired Lieutenant Colonel Chit Han), and singer Ah Boy (son of tycoon Sein Win).

Khin Thiri Thet Mon owns N.P.K Motors, which imports MG-brand and other EVs and operates charging stations across major cities. Her primary business partner is Naing Phyo Kyaw, husband of actress Wutt Hmone Shwe Yi.

The regime’s EV trade-in plan has been widely criticized by the public. Critics point out that the country faces severe power shortages, leading to a lack of charging stations and making conditions unsuitable for EVs at the moment.

Many also say the regime’s plan is aimed primarily at delivering a further windfall for the EV business dominated by Min Aung Hlaing’s children.

Due to the global fuel crisis caused by the conflict in the Middle East, the regime has rolled out a series of restrictions, including an odd-even driving rule, strict rationing and a Wednesday work-from-home mandate for government employees.

EVs are exempt from the odd-even rule, however, pushing consumers toward electric cars.