The Cambodian auto industry is largely made up of used cars, which account for nearly 72% of the market, but this trend is likely to change in the near future.
The Kingdom’s vehicle sector has seen notable growth in both sales and imports, by around 24% in the nine months of 2021, according to the Cambodian Automobile Industry Federation (CAIF).
The Cambodian auto industry is largely made up of used cars, which accounted for nearly 72% of the market at the end of 2021. However, this trend is likely to change in the near future.
Tan Monivann, President of the Cambodian Automobile Industry Federation said Khmer time that economic growth and the emergence of the middle class in Cambodia have boosted new car sales. The demand for new brands of cars in Cambodia is increasing by 15% per year, in line with the growth of the Cambodian economy.
According to Monivann, Cambodia’s national economic growth has increased by 4% in 2021 according to the World Bank’s Economic Outlook. Economic growth has helped Cambodians earn high income to buy new cars. Also, people choose to drive a new car because a new car has a long warranty of quality. In addition, a new car is equipped with the latest technology and security systems and has after-sales service. There are 40 official brands distributed by new cars by the end of 2021.
Aimed at meeting the growing demand for new cars in the local market, Cambodia attracts around nine automobile manufacturing plants to Cambodia in 2021.
According to a press release, Mikami Masahiro, Japanese Ambassador to Cambodia, told Prime Minister Hun Sen on December 28 that Toyota is one of the largest auto distributors in the Kingdom which has unveiled an investment plan to establish a factory in ‘vehicle assembly which in turn will meet the demand for new cars in the local market.
Monivann is optimistic that the new auto manufacturing plant will bring more benefits to the people. He said the new factory promotes low-cost cars in the local market. Toyota Company is the big company that manages reputation and helps in job creation for Cambodians.
RMA Group CEO Ngorn Saing said Khmer time as the trend of new cars increases in market share because a Cambodian has a good understanding of the quality of new cars. “People are switching to new cars because the income is higher with the installment payment options,” he said.
Toyota Company has entered the market is a good opportunity for national economic growth with attracting more foreign investors for the supply of auto manufacturing spare parts
In the Cambodian automotive sector, there are many multinational companies that invest with strong competitiveness. The customer has a better choice with an attractive promotion. The number of newly registered vehicles in 2021 was 920,000 automobiles in total and 5.2 motorcycles in Cambodia, according to a report released by the Ministry of Public Works and Transport.