Cambodian Auto market is moderately growing this year and is projected to end at 4.300 units. Indeed the demand is growing fast, but actual rules favorite the parallel import of pre-registered vehicles at zero kilometers.
Cambodian economy has been supported by the robust growth in tourist arrivals and garment exports through June. However, despite solid export growth the merchandise trade deficit widened in H1 on a surge in imports. Turning to H2, the economy should be supported by greater agricultural production, as the impact of recent flooding recedes. In October, Moody’s confirmed Cambodia’s B2 credit rating with a stable outlook; however, they also warned that the loss of preferential market access to the EU would dent Cambodia’s growth path and, thus, its credit rating.
That’s could be and effect of the July 29th pools, when Prime Minister Hun Sen declared absolute victory in the national election—his party now holds all 125 seats in the national assembly—, which was condemned internationally.
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 Hun Sen should further postpone the adoption of more logic import rules. Indeed, together with Laos, Cambodia is the only country within the ASEAN without a clear rules against the import of pre-owned old, high polluting, low safety vehicles.
Moreover, the 2017 increase of vehicles import duties have further boosted the local new vehicles price creating wide space for traders of obsolete or semi-new cars from Japan or others ASEAN countries.
In absence of new facts, in the 2018 the new vehicles market is not showing signs of real development while the import of used vehicles (including vehicles registered but without kilometers) is fast growing, according to data released by the local Customs Authority.
New vehicles registration are moderately growing and Year to date October, sales of new light vehicles had been 3.778 (+6.9%) projecting the entire year at 4.300 units.
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Toyota is market leader while the fastest growing brand this year is Mazda, up 128%.