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Flash Reports

Cambodia September. New vehicles market up 6%, grey market booms

cambodian auto market Mazda-CX-5-2017

Cambodian Auto market in the first three-quarters of the 2018 reported an increase of 6% with new vehicles registration well below the current potential. The country is fast expanding thanks to export and tourism, but recent elections could have stepped back the development.

Economic Environment

Cambodian economy to perform well at the close of the second quarter thanks to robust, albeit more moderate, growth in tourist arrivals and garment exports in June. Moreover, the number of approved investment projects soared in Q2 in annual terms, largely driven by investment inflows from China aimed at the services sector. However, worrying news came in early October, when the EU announced a six-month review of Cambodia’s preferential market access.

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.

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 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 remain slow while data on import released by local Customs Authority are in strong increase. Year to date September, sales of new light vehicles had been 3.396 (+6.4%) disappointing the several entrepreneurs which recently started operations representing many international brands, landed in this country and waiting for future developments.

Market September Sales Sales Q3 Sales 2018 YTD Variation September Variation Q3 Variation 2018
Car+LCV 366 1.019 3.396 2,8% -4,7% 6,4%

 

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