Myanmar’s EV: Driving Change or Consolidating Regime Power?
SRIc Insights By Phyo Thura Aung
Myanmar’s electric vehicle (EV) adoption initiative seeks to reduce fuel imports and foreign currency outflows. Still, critics argue it serves as a tool for the military regime’s economic control, with limited focus on equitable or sustainable development.
Key Takeaways:
EV adoption reduces fuel import dependency, but the policy prioritizes economic stabilization for the military regime rather than sustainability goals.
Import regulations and incentives disproportionately benefit military-linked entities, limiting competition and equitable market access.
Insufficient charging stations and unreliable electricity supply, especially in rural areas, hinder EV adoption and reflect gaps in long-term planning.
Evolution of Electric Vehicles in Myanmar
The program to promote Electric Vehicles was launched in late 2022 under a directive from the State Administration Council (SAC), Myanmar’s ruling military government, under Ministry of Commerce (MOC) order No.62/2022. Myanmar’s adoption of electric vehicles (EVs) is being positioned as a solution to reduce the country’s reliance on imported fuel, a significant source of foreign currency outflows. While this initiative aligns with global trends toward sustainable energy and transportation, it is also deeply intertwined with the political and economic priorities of the military-led government. Critics argue that the policy is less about environmental reform and more about bolstering the regime’s economic control amidst growing international sanctions and a power struggle.
By mid-2023, over 2,700 EVs had been registered under the initiative, with most imported from China. The government has framed the policy to reduce fuel dependency and save foreign currency. Still, observers note that the SAC’s primary focus appears to be economic stabilization for political leverage rather than environmental or developmental goals. The environmental benefits of EVs, such as reducing carbon emissions, remain largely absent from the government’s narrative.
Regulation on the Import of Electric Vehicles
EV import regulations are tightly controlled, with licenses granted predominantly to businesses linked to powerful military-affiliated (SAC) entities. Many of the country’s EV dealerships are owned by individuals close to the junta, raising concerns about market monopolization and lack of transparency. While centralized control ostensibly aims to monitor foreign currency outflows, it has created an uneven playing field, limiting competition and discouraging participation from smaller businesses and international stakeholders. The concentration of wealth and power within a narrow circle exacerbates existing inequities and has drawn criticism for prioritizing regime interests over broader economic benefits.
Income Tax Incentives and Exemption on Electric Vehicles
Efforts to incentivize EV adoption include customs duty waivers, commercial tax exemptions, and reduced registration fees. Citizens working abroad are also permitted to import one EV annually if they remit 25% of their monthly salary, amounting to over $200,000, through exchange channels under SAC direct control - a move aimed at increasing foreign currency inflows. However, the SAC exchange rate (1 USD ≅ 3000 MMK) set by the junta undervalues these remittances, effectively depleting their actual worth (1 USD ≅ 4500 MMK). These policies reflect the SAC’s broader strategy of leveraging EV adoption to consolidate economic control while the benefits for individual consumers and small businesses remain limited.
Challenges in Infrastructure and Electricity Grid
Infrastructure challenges further highlight the gaps in the government’s approach. While over 140 EV charging stations have been approved, only 38 stations (equipped with 51 chargers) are operational, primarily in urban areas like Yangon and Nay Pyi Taw or along the Yangon-Mandalay Expressway. Rural regions, where much of the population resides, remain underserved, mirroring the country’s broader inequitable development patterns. Compounding this issue is Myanmar’s unreliable electricity supply, which relies heavily on hydropower and natural gas. Seasonal droughts and fluctuating gas production often lead to power shortages, undermining the feasibility of widespread EV adoption. Additionally, the high cost of setting up charging infrastructure - ranging from $800 for basic home units to $80,000 for advanced public chargers - has deterred private sector investment.
Path to Sustainability or Regime Strengthening
Myanmar’s transition to electric vehicles (EVs) presents significant opportunities and complex challenges. On the one hand, it could reduce fuel dependency, promote a green economy, and contribute to global sustainability efforts. On the other hand, the initiative is deeply entwined with the political and economic agenda of the military regime, which has used the EV program to consolidate its control over the country’s economy.
To unlock the full potential of EV adoption, Myanmar must address critical infrastructure gaps, including expanding reliable charging stations and improving the electricity grid, especially in rural areas. The government must also prioritize renewable energy sources such as solar and wind to power the EV network sustainably. However, the regime’s focus on economic stabilization for political leverage rather than true environmental reform raises concerns about the equitable distribution of the benefits of EV adoption.
The current regulatory framework favors military-linked entities, limits competition, exacerbates economic inequality and undermines the program’s potential for broad-based development. Moreover, efforts to incentivize EV adoption - such as tax exemptions and remittance policies - are heavily tilted in favor of the regime, leaving smaller businesses and ordinary citizens at a disadvantage. The government’s focus on economic control, rather than fostering a competitive and transparent market, further hinders the EV initiative’s success.
To make meaningful progress, Myanmar must shift its priorities. This includes fostering local production of EV components to reduce import dependency and create jobs while ensuring that incentives benefit all citizens, not just regime-affiliated businesses. Expanding public awareness and providing affordable financing options for consumers can also help boost EV adoption.
Conclusion
Ultimately, Myanmar’s EV adoption initiative is a critical test of the military regime’s ability to balance its economic goals with broader developmental and environmental objectives. Without an inclusive strategy that addresses infrastructure, regulatory fairness, and renewable energy integration, Myanmar risks reinforcing existing power structures rather than achieving meaningful, sustainable progress. Only by addressing these issues can Myanmar harness the true potential of electric vehicles, securing a more equitable and prosperous future for its people.
Phyo Thura Aung is a Research Assistant at the Sustainability Lab of the Shwetaungthagathu Reform Initiative Centre (SRIc). He passionately advocates for social change in Myanmar while advancing his academic journey in Vietnam.
Tin Shine Aung, Consulting Director at the Sustainability Lab of the Shwetaungthagathu Reform Initiative Centre (SRIc), reviewed and edited the article.
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