Myanmar’s automotive reforms: Fuel vehicle tariff reductions and new EV regulations

29 July 2025

In a bid to reshape its automotive landscape, Myanmar has unveiled key reforms targeting both conventional fuel vehicles and the emerging electric vehicle (“EV”) market. This article provides a brief overview of each of these developments.

Fuel vehicle tariff reductions

On 4 June 2025, the Ministry of Planning and Finance issued Notification No. 39/2025 (“Notification 39”), reducing import tariffs for locally manufactured fuel-powered vehicles. Notification 39 is in effect from 1 June 2025 to 31 March 2026. It sets out the new tariff rates based on how the vehicles are imported and assembled, that is whether they are “semi-knocked down” or “completely knocked down”. Completely built-up vehicles, that is those imported as fully assembled units, are no longer subject to any tariffs. 

Regulation of EVs

On 29 May 2025, the Ministry of Commerce issued Notification No. 40/2025 which sets out the regulatory measures to support the development of EVs and related businesses. Notification 40 requires the following to be complied with prior to the importation of EVs:

• Importation approval must be obtained from the National Level Steering Committee for the Development of Electric Vehicles and Related Enterprises and the EV to be imported in accordance with the Committee’s stipulations and standards;

• Registration certificate must be obtained for EV showrooms; and

• The importer must ensure imported EVs, spare parts, and after-sales services are warrantied and available.

Notification 40 also sets out requirements which must be complied with to open an EV sales showroom, including that the company must be a registered national or joint venture entity with the Directorate of Investment and Company Administration that is officially appointed as a distributor or car dealer by the EV company.