This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/6/2019

Overview

With Cambodia’s growing prosperity, automobile ownership is rapidly increasing.  The vast majority of cars are imported second-hand vehicles.  The most popular models are four-wheel-drive vehicles and mid-sized Japanese sedans.  All car imports must be left-hand drive.  The total annual value of imported vehicles, motorcycles, and parts increased by 39.5 percent to reach $1, 616 million in 2018.  Around 54,000 cars are sold annually in Cambodia, but more than 80 percent of those cars are imported used vehicles, which makes the new vehicle market quite small.  The United States appears to be the largest supplier of used vehicles in Cambodia.  In 2016, U.S. exports of motor cars and motor vehicles to Cambodia was valued at $38.77 million, accounting for 10 percent of the total export of U.S. automobile products.  A number of companies sell used and new cars in Phnom Penh.  Ford and Chevrolet have local dealerships.   Annual sales of passenger cars and parts from the U.S. to Cambodia increased by 47 percent to $225 million in 2014.  The market also supports Mercedes, Sanyong, Great Wall Motor, Hyundai, BMW, and Peugeot dealers as well as representatives of major Japanese companies including Toyota, Honda, Nissan, Subaru, Mitsubishi, and Mazda.  In early January 2013, a private Cambodian company, Heng Development Company, launched its electric car, the Angkor EV 2013.  With growing income levels, new cars are gaining in popularity in the country. 

BMI research of the U.K in 2017 forecasted that new car sales in Cambodia will grow at an average rate of 16.6 percent over the next five years.

Import of Vehicles, Motorbikes and Parts

2016

2017

2018

Total imports (value)

1,028,000

1,158,000

1,616,000

Exchange Rate: 1 USD

4,000 riel

4,000 riel

4,000 riel

Unit: USD thousands
Data Source: Ministry of Economy and Finance

Automobile parts and accessories from the United States are available in Cambodian markets, particularly for Ford and General Motors vehicles.  Limited availability of parts for other makes and models has led customers to choose Toyota vehicles because parts are available and affordable.  As with other products, U.S. auto parts have a reputation for quality and attract a higher price than parts produced in Thailand, Taiwan, or other Asian countries.
 

Opportunities

Further opportunities exist in used cars, accessories, and spare parts.
 

Web Resources

Ministry of Public Works and Transport
Automobile Association of Cambodia

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