A five-year distribution agreement has been officially signed between Tan Chong Motor (Myanmar) and Nissan Motor Co. Ltd, Bernama reports. Tan Chong’s Myanmar unit was reported to have gained the exclusive rights back in July 2013.
Additionally, the agreement includes “providing after-sales services of the vehicles in the republic,” the group disclosed. The distribution agreement also states that TCM Myanmar has the right to appoint dealers to sell vehicles and perform after-sales service operations on Nissan vehicles.
According to Tan Chong, Nissan has granted sole exclusive rights to TCM Myanmar, the group stated in a filing to Bursa Malaysia on Thursday. The agreement will see TCM Myanmar sell, distribute, manufacture and assemble Nissan vehicles in the South East Asian country.
Tan Chong Motors Myanmar will commence with the distribution of Nissan vehicles in the country by the second half of 2016. It is based on Tan Chong’s on-going operations in Vietnam, Cambodia and Laos.
The agreement, Tan Chong says, has no material effect on earnings, gearing and net assets of the Tan Chong Group for the financial year, ending December 31, 2015. The group, however, expects that it will contribute positively to its future earnings.
