Scania has entered into an agreement with Octagon International Services Co Ltd regarding sales and service of trucks and buses in Myanmar, formerly known as Burma. The ongoing modernization of the country and its infrastructure has led to increased demand for trucks for goods and construction-related transport services as well as for tourist and long-distance coaches.
“If Myanmar continues to develop positively, the country can become one of the major markets in the region for vehicles of Western European standard and quality levels,” says Henrik Henriksson, Executive Vice President, Head of Franchise and Factory Sales. “Octagon expects to deliver 200 to 300 vehicles even during its first year as our distributor.”
Octagon International Services, a company in the Shwe Taung Group, is a distributor of world-leading makes of machinery and vehicles for the construction industry and is also responsible for providing service to this sector. By including Scania’s trucks in its product portfolio, the company will strengthen its capability to deliver comprehensive solutions for the major infrastructure projects that are under way.
“Even today there is heavy demand for robust trucks with good load capacity for transport services, for instance in construction of roads and power plant dams. The need for trucks for long-haul goods transport will also increase in line with improved road standards and economic growth,” says Henriksson.
Concurrently with the expansion of the road network and continued urbanization, demand is also increasing for long-distance coach services, particularly for travel between the major cities of Nay Pyi Taw,Yangon and Mandalay. The growing stream of tourists visiting Myanmar has also contributed to the increased demand. Octagon expects to deliver some 100 buses and coaches during its first year as Scania’s distributor.
Octagon has recently opened a new service facility exclusively for Scania’s vehicles in Nay Pyi Taw and is now building a Scania workshop inYangon. The construction of a new workshop in Mandalay will also begin shortly.
“The investment that our distributor is making to build up a service network will provide Scania with a strong position in the market. Octagon’s investment also demonstrates that companies in the country believe in continued positive development in Myanmar,” concludes Henriksson.