Cambodian Auto market In the 2019 the market even accelerated probably for the combined effect of the reduction of grey market and strong consumer demand and hit the new all time record, with full year sales at 8.560 unit, up 6.6%.
Economic Environment
Cambodia economic growth appears to have been robust so far this year, although is likely down somewhat from the impressive levels seen in past years. Positives include resilient export figures in the first part of this year, unlike many regional neighbors, with a large reported increase in exports to the U.S.
Moreover, visitor numbers were robust in the year to July, which should have boosted the service sector. In addition, total credit lent to the private sector increased by over a quarter year-on-year in January–July. However, concerns remain around domestic agricultural performance, with the sector hindered by droughts in the first half.
In 2020, growth looks set to weaken slightly on softer momentum in China and the potential withdrawal of preferential market access to the U.S. and EU. However, Cambodia should still outperform most regional neighbors. Domestically, the large increase in credit extended to real estate activities is an area of concern going forward.
Market Trend
Cambodian vehicles market continue to be full of contradiction and request for changes in the current rules were raised by all key players, while the renovated political victory of the President Hun Sen has not produced effects while postponing the adoption of more logic limits to the import of new and old vehicles rules.
Indeed, together with Laos, Cambodia is the only country within the ASEAN without a clear policy against the import of pre-owned old, high polluting, low safety vehicles and the tax reform applied in 2017, which increased the duties for new vehicles import, has penalized the local distributors which increased price freezing a potentially high demand and creating wide space for trading from Japan or others ASEAN countries.
However, in 2018 the market confirmed its potential reporting a positive score, when light vehicles sales were at 4.853.
In the 2019 the market even accelerated probably for the combined effect of the reduction of grey market and strong consumer demand and hit the new all-time record, the 10th in a row, with full-year sales landing at 8.560 unit, up 6.6%.
And the outlook for the 2020 is even better…
In the competitive landscape, Ford confirms the leadership ahead of Toyota and Mazda. The success of these brands is strongly related to their pick up sales.
Tables with sales figures
In the tables below we report sales for the top brands
