Phnom Penh, 30 June 2026 — EuroCham Cambodia’s Automotive Committee convened industry leaders, government officials, and investors at a breakfast talk on the Automotive Sector Outlook for 2026 and Beyond, presenting new data on Cambodia’s vehicle market and tax structure and calling for reforms to support local assembly and market discipline.
The event, held at Novotel Phnom Penh BKK1, was sponsored by RMA Cambodia with the Cambodia Automotive Industry Federation (CAIF) as media partner. It opened with remarks from Mr. Martin Brisson, Executive Director of EuroCham Cambodia, and Mr. Bryan Fonari, Head of Cooperation at the Delegation of the European Union to the Kingdom of Cambodia before moving into sector presentations from leaders of the public and private sectors.
Market Growth, and a Tax Structure Working Against Local Assembly
Mr. Makara Chhoeurn, Chairperson of EuroCham’s Automotive Committee and Project Manager at RMA Cambodia, reported that Cambodia’s vehicle market reached roughly 82,000 units sold in 2025 across around 100 represented brands, with car sales increasing by 35% year-on-year during the first five months of 2026. New vehicle sales are driving that growth, now accounting for 66% of the market, up from 28% in 2020 — a share Mr. Chhoeurn said could reach 80–90% by 2028.
That growth sits alongside US$217.7 million in local assembly investment across 13 plants since 2011, including recent entrants BYD and TH Automotive Cambodia.
However, his presentation highlighted a structural disincentive: under current tax rates, importing a fully-built electric vehicle carries a total tax burden of 21%, while importing an equivalent combustion vehicle from the manufacturer can reach 130%. Based on Mr. Chhoeurn’s estimates, assembling a BEV in Cambodia costs approximately USD 4,000 more per vehicle than importing a fully built BEV (the actual cost difference varies depending on the car value).
QUOTE
“Cambodia’s vehicle market continues to grow. However, the market remains undisciplined, with challenges including grey-market imports, low-priced vehicle imports, and online vehicle sales operating outside the authorised distributor network.
Despite Cambodia’s growing number of vehicle assembly plants and significant investment, no manufacturer is assembling Battery Electric Vehicles (BEVs) locally because importing BEVs remains significantly more cost-competitive under the current tax structure.
To ensure a sustainable automotive manufacturing industry, the government needs to review and rebalance the current vehicle tax and policy framework. Without policy adjustments, local assembly plants may struggle to compete with imported BEVs, putting future manufacturing investment and existing operations at risk,” Mr. Chhoeurn Makara, Chairperson, EuroCham Automotive Committee and Project Manager at RMA Cambodia.
EuroCham’s Automotive Committee called for greater tax policy predictability, a clear licensing framework for assembly plants, and stronger protection for exclusive distribution rights — alongside tighter market discipline to address grey-market imports, unlicensed dealers, and weak consumer protection on warranties and after-sales service.
Skills Development Fund Highlights Automotive Training Push
Mr. Chantheara Lay, Engagement Team Leader at the Skills Development Fund (SDF), presented the Fund’s automotive-sector track record: US$2.19 million in training costs for 2,799 trainees since 2018, with SDF covering roughly half training investment and female participation reaching 23%. SDF also highlighted it’s Training the Trainer initiatives, with Cambodian trainers who completed EV-skills training in China, and outlined five priority training clusters — EV readiness, diagnostics, maintenance, productivity, and trainer development — that eligible companies can pursue alongside tax deductions of up to 200% for training expenditure.
“Cambodia cannot compete only on low labor cost. The sector needs a pipeline of technicians, supervisors, and trainers who can meet industry standards. Skills development is not a social activity. It is a competitiveness strategy for Cambodia’s automotive sector,” the SDF presentation stated.
The morning closed with a panel moderated by Mr. Chhoeurn Makara, featuring H.E. Lim Visal, Deputy Secretary General of the Cambodia Investment Board (CDC); H.E. Ky Sokkim, CEO of the Skills Development Fund; Mr. Kensuke Tsuchiya, President of Toyota Cambodia and Toyota Tsusho Manufacturing (Cambodia); and Mr. Ngorn Saing, Chairperson of CAIF and CEO of RMA Cambodia.
QUOTE
“At SDF, ‘Industry-driven’ is not a slogan. It is our operating model: ‘Co-design, Co-invest and Co-own’ the results of workforce development together,” H.E. Ky Sokkim, CEO of the Skills Development Fund.
Audience questions during the Q&A centred on curbing grey-market imports, strengthening vehicle safety standards, and the expected pace of EV market growth in Cambodia.
