Vehicle imports dip as domestic assembly plants raise production
Vehicle imports dip as domestic assembly plants raise production
Cambodia’s vehicle import is experiencing a significant shift in 2024, with import values declining in the first four months compared to the same period last year. This trend comes amidst the recent launch of several automobile assembly plants in the country.
According to data from the General Department of Customs and Excise (GDCE), the total value of imported vehicles between January and April 2024 reached $496 million. This represents a decrease of 12.8 percent compared to the $568 million recorded during the first four months of 2023.
This decline in imports comes amidst a surge in domestic vehicle assembly activity.
Several major international car manufacturers have established assembly plants in Cambodia in recent months. These factories are expected to produce a significant number of vehicles for the local market, reducing reliance on imported cars.
Soeun Dara, Executive Director of the Cambodia Automotive Industry Federation, viewed the decline of vehicle imports, mostly the used vehicles, to prolonged global economic slowdown and the remarkably increasing trend of using new vehicles in the domestic market.
“As trend of using new vehicles increases coupled with automobile assembly plants operating in the country, it will lead to a more vibrant and completive autonomic sector in Cambodia,” Dara told Khmer Times.
Once more vehicle assembly factories open in Cambodia, it will lead to lower car prices for consumers and this will also lead to reduced dependence on used car imports, he said.
According to Dara, the new vehicles constitute 45 percent of the auto market in Cambodia as of 2023 and the rest by used cars.
The influx of vehicle assembly plants is attributed to Cambodia’s attractive investment climate, including favourable tax policies and a growing skilled workforce. This shift towards domestic production aligns with the government’s aspirations to transform Cambodia into a regional automotive hub.
In May, Toyota Tsusho Manufacturing (Cambodia) Company Limited, a joint venture between Japan’s Toyota Tsusho Corporation and Cambodia’s conglomerate Kong Noun Group officially started operation in the Royal Group Phnom Penh Special Economic Zone.
At the launching ceremony, Prime Minister Hun Manet viewed the Toyota factory as a significant step towards transferring automotive technology to Cambodia, providing training opportunities for Cambodian youth directly within the factory setting.
Cambodia has a vision to become a hub for the production of auto parts and electronic components for export to regional and global markets, which will bring many positive results for the country’s socio-economic development, the Prime Minister said.
Currently, Cambodia has six auto assembly plants, four of which are already operational and two others are preparing for operation, according to a report of the Ministry of Industry, Science, Technology, and Innovation.
Other five are Samyung in Svay Rieng province, Ford in Pursat province, Hyundai in Koh Kong province, Kia in Banteay Meanchey province, and GTV Motor in Kandal province.
