China-based Zhejiang Hozon New Energy Automobile, manufacturer of NETA brand electric vehicles, officially announced its bankruptcy on June 19. This announcement has significantly impacted Myanmar’s electric vehicle market, leading to a sharp decline in demand, according to car market experts in Yangon. The company filed for bankruptcy after a creditor sued for 5.3 million yuan while the company was already carrying over 10 billion yuan in debt.
Currently, NETA brand showrooms have closed, and company employees have been protesting on the streets since November 2024 due to unpaid salaries. In Myanmar, electric vehicle sales have declined due to unreliable electricity supply, and charging costs exceed gasoline prices, leading to decreased consumer interest. Car dealers from the Yangon Automobile Trading Association report that electric vehicles are accumulating in the domestic market, and reselling purchased vehicles has become difficult. Electric vehicles in Myanmar range from a minimum of 80 million kyats to nearly 200 million kyats, depending on performance, durability, and luxury features. Thousands of electric vehicles were imported into Myanmar during 2022 and 2023.
The children of military council leader Min Aung Hlaing, including Aung Pyae Sone and Khin Thiri Thet Mon, have been heavily involved in the electric vehicle import business. Khin Thiri Thet Mon, along with her business partners Naing Phyo Kyaw and Wai Yan Min Maung, established NPK Motor Co Ltd, importing various electric vehicle brands including MG Myanmar and Leapmotor Myanmar. The company has also secured rights to build EV charging stations across Myanmar. Similarly, Aung Pyae Sone has been importing BYD electric vehicles through various proxy businesses. The demand for these vehicles has significantly decreased, coinciding with the military council’s nationwide crackdown on unlicensed vehicles beginning June 1, which continues to date.
