Electric vehicle registrations are rising rapidly in Myanmar due partly to “parallel imports” brought in by unauthorized dealers, but a lack of repair and maintenance support could put the reputation of major brands at risk.

The country’s growing EV market is readily apparent in the commercial capital of Yangon. In addition to Chinese-made EVs, one can see Toyota Motor’s bZ4X—even though the Japanese automaker does not import the model, which is built through a joint venture in China.

Myanmar had 6,166 passenger EVs registered as of December 2024, more than triple the number a year earlier, according to the country’s Road Transport Administration Department. The military regime has promoted EV imports by waiving tariffs in a bid to reduce fuel consumption.

The regime has largely banned imports of gasoline-fueled vehicles, and domestic production of such cars has stalled since the 2021 military takeover. Prices of used cars have soared, making EVs appear less expensive by comparison. A compact EV from Chinese automaker BYD costs around MMK 150 million (USD 72,200), on par with a preowned upmarket gas vehicle.

Around 80 local companies have imported more than 50 models of EVs over the past two years, according to a state-run newspaper, which noted that brands like Toyota, BYD, and SAIC Motor-owned MG are especially popular. This has raised concerns that inadequate repair and maintenance services could damage these brands.

Several authorized Toyota dealerships all provided the same answer when contacted about purchasing the bZ4X—they do not import or repair the EV. When asked about after-sales services at a local showroom selling the bZ4X, a representative referred customers to the vehicle’s importer.

In some cases, dealerships of Dongfeng Motor Group are selling the bZ4X or another Toyota EV, the bZ3, even though the Chinese automaker has no relation to the models.

“The time has come for companies to seriously consider providing after-sales services for the EVs flowing into the market,” said an executive at a Japanese automaker.

Chinese companies have already begun taking action. BYD has partnered with three local companies deemed to have the proper import licenses and sufficient repair capabilities, and encourages prospective buyers to go through its official channels. GAC has opened official dealerships for its Aion brand of EVs in Yangon and elsewhere.

Japanese, US, and European automakers are hesitant to engage in Myanmar’s EV market, worried about investor perception. The family of Min Aung Hlaing, the head of the military regime, is said to run an import business, and this keeps Japanese and other companies from jumping on the country’s EV bandwagon.

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.