Economic analysts have stated that a detailed assessment is required to determine whether assembling and producing electric vehicles (EVs) entirely within Myanmar would be more cost-effective than importing them from overseas.

During the Union Government meeting held on July 7th, 2026, President U Min Aung Hlaing stated that if EVs could be fully assembled and produced within Myanmar, it would create employment opportunities, facilitate the transfer of technological knowledge and enable citizens to access and use such vehicles at a lower cost.

Myanmar currently has experience in assembling internal combustion engine vehicles domestically using the semi-knocked down (SKD) system, and the government is seeking to extend domestic assembly and production capabilities to EVs.

An economic analyst told a local daily that the high prices currently seen in the market are largely attributable to importers inflating prices. He added that domestic EV assembly would only be economically viable if vehicles were produced in sufficiently large volumes.

"Whether it makes economic sense or not depends on how many units are produced. If only a small number of units can be manufactured and sold, purchasing completely assembled vehicles is more cost-effective. This is because international completely built-up (CBU) vehicles are produced in the millions, significantly reducing labour costs. The main issue is not that EVs are inherently expensive or that production costs in the manufacturing countries are high. If one examines international websites, an EV costs around US$ 10,000, US$ 20,000, or, at most, slightly more than US$ 30,000. The high price does not originate in the manufacturing country; rather, importers are generating substantial profits in the supply chain. The authorised import companies are adding profit margins of 100 million to 200 million Kyats per vehicle, which is causing EV prices to rise sharply. In reality, if the import process were made accessible to a wider range of applicants, prices would not increase to such an extent," said the analyst.

It is understood that more than 80 domestic companies are currently authorised to import EVs, with each company permitted to import up to 20 units every three months.

Economic observers and automotive industry participants have noted that if EVs are to be fully assembled and produced in Myanmar using the SKD system, substantial overhead costs - including expenditure on infrastructure development, machinery installation and skilled labour - could create short-term challenges, although such an approach may become viable over the longer term.

An automotive entrepreneur told a local daily that the current availability of EV charging stations in Myanmar remains inadequate and that this issue must be considered when evaluating domestic EV production.

"With regard to whether fully assembled vehicles or individual components should be imported, there are instances where importing individual components is actually more expensive. Another issue that should be considered is whether sufficient charging infrastructure exists to support EVs produced under the SKD system. Even with the current number of EVs on the road, vehicles are required to queue at charging stations in Yangon. While the long-term vision of the project exists, implementing it in the short term presents numerous challenges," the entrepreneur said.

According to records from the Road Transport Administration Department, more than 27,000 EVs are currently in operation in Myanmar. The primary brands are Toyota, BYD and MG, with approximately 90% of these vehicles manufactured in China.

In addition, more than 170 charging stations have reportedly been established along the Yangon-Mandalay Expressway and in major cities across the country.