PHNOM PENH: The Cambodian automotive industry is growing rapidly, with a focus on electric vehicles (EVs). The number of registered EVs in Cambodia increased by 1,000% in 2022, and the government is now focused and fully supporting the private sector in building charging stations.
Dr. Tan Monivann, president of the Cambodia Automotive Industry Federation (CAIF), recently spoke at the China-ASEAN Forum on Electric Vehicle Industry in Nanning (China Guigang E.Vehicle).
Doctor highlighted the potential and investment opportunities in the Cambodian EV industry, noting that the new investment law and long-term plan to promote the use of EVs in Cambodia have created a favorable environment for investment.
However, Dr. Monivann also pointed out that there are some challenges that need to be addressed, such as the lack of public EV charging stations. He called for joint consultations between experts and other stakeholders to ensure the smooth operation of EVs in Cambodia.
The government has taken some steps to address the challenges facing the EV industry. For example, it has provided subsidies for the purchase of EVs and has supported the development of a national EV charging infrastructure.
The future of the Cambodian EV industry is bright. With the right support, the market is expected to continue to grow rapidly in the coming years. This will help to reduce air pollution, improve energy security, and create jobs in the automotive industry.
According to the data from the CDC, investment capital in automotive assembly and components manufacturing from 2020 to 2022 was $1.38 billion. Automotive components manufacturers and vehicle assemblers have been growing in Cambodia.
Japan, Korea, and China are major investors, while the main export markets include Thailand and Japan. The Royal Government adopted the Cambodia Automotive and Electronics Sectors Development Roadmap in 2022, an indicator of the sector’s importance for further economic growth.
According to calculations based on data from GDCE, from 2020 to 2022, exports of automotive components were $484.78 million and the compound annual growth rate in exports of automotive components was 10 percent.
