Cambodia’s vehicle industry grown nearly 24% in nine months in 2021

Cambodia’s vehicle industry is comprised largely of used cars, which account for almost 72 per cent of the market, but that trend is likely to change in near future The Kingdom’s vehicles business has seen a noticeably growth in both in terms of sales and imports by an estimated 24 percent in nine months of 2021, according to the Cambodia Automotive Industry Federation (CAIF). Cambodia’s vehicle industry is comprised largely of used cars, which account for almost 72 per cent of the market in the end 2021. However, that trend is likely to change in the near future. Tan Monivann, president of Cambodia Automotive Industry Federation told Khmer Times that economic growth and the emerging middle class in Cambodia have boosted new car sales. The demand of new car brands in Cambodia grows 15 percent annually, parallel with the growing Cambodia economy. According to Monivann, Cambodia’s national economic growth saw an increase of 4 percent in 2021 by the World Bank Economic Outlook. Economic growth helped Cambodia people make high income to buy new cars. Also, people opt to drive new car because a new car has long quality guarantee. Besides, a new car is embedded with latest technology and safety system and has after sale service. There are 40 official brands distributed by new cars by the end of 2021. Aimed to meet the growing demand for new car in the local market, Cambodia attracts about nine automobile manufacture factories in Cambodia in 2021. According to a press release, Mikami Masahiro, Ambassador of Japan to Cambodia told Prime Minister Hun Sen on December 28 that Toyota is one the biggest auto distributors in the Kingdom that has unveiled an investment project to establish a vehicle assembly factory which in turn  will meet the demand for new cars in the local market. Monivann is optimistic that new automobile manufacture factory will bring more benefits for the people. He said that the new factory is promoting lower price car in local market. Toyota Company is the big company that has reputation management and helps in job creation for Cambodian people. RMA Group CEO Ngorn Saing told Khmer Times that the new car trend is increasing in the market share because a Cambodian has a fair amount of understanding about new car quality. “People are opting for new cars since there is  higher income with installment payment options,” he said. Toyota Company has entered the market is a good opportunity for national economic growth with attract more foreign investor for supplying spare part of automobile manufacture In the Cambodian automobile sector, there are a lot of multi-national companies that invest with strong competitiveness. Customer has better choice with attractive promotion. The number of newly registered vehicles in 2021 was 920,000 automobiles in total and 5, 2 motorbikes in Cambodia, according to a report released by the Ministry of Public Works and Transport. This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources. Khmer Daily