Cambodia Investment Review
The Cambodian car market is experiencing rapid expansion, fueled by a growing middle class and an increasing demand for new and used vehicles. As the country’s infrastructure improves and the younger generation aspires for a better quality of life, the auto market is attracting financing solutions, such as those offered by Phillip Bank, and creating investment opportunities in the sector.
Read more: Demographics and higher incomes mean Cambodian auto demand set to rise
Phillip Bank, the only Singaporean-owned commercial bank in Cambodia, is capitalizing on this growing demand by offering car financing to individuals and businesses with flexible terms and conditions. With financing available in USD, terms ranging from 18 to 96 months, and annual interest rates between 10% and 14%, the bank aims to cater to a wide range of customers in this burgeoning market.
50,000 new vehicles predicted next year
H.E. Nut Unvoanra, Deputy Secretary of the Cambodian Investment Board (CIB), highlighted the potential for growth in Cambodia’s auto market at a recent breakfast briefing hosted by the European Chamber of Commerce (EuroCham). He noted that new vehicle registrations in the country are predicted to hit 50,000 next year, a significant increase from just 7,000 in 2016, and are expected to continue rising.
The emerging electric vehicle (EV) market also presents a wealth of investment opportunities. As the demand for EVs and related technology grows in Cambodia, investors have the chance to support the creation of necessary infrastructure, such as charging stations and the import of spare parts. This will contribute to the development of the automotive sector and the country’s overall economic progress.
Finance options for Cambodia’s expanding car market
A fellow panelist working in the industry which imports 20 international brands in Cambodia, including marquee names such as Rolls Royce and Lamborghini as well as more esoteric vehicles such as jet skis. He said that the use of passenger motor vehicles in Cambodia was still at a very low level. He said that European countries with a similar population size typically saw new vehicle registration figures of around 500,000 a year – ten times the amount slated for Cambodia in 2023.
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A recent World Bank report revealed that Cambodia’s economy continued to recover in 2022, with the services sector strengthening due to pent-up consumer demand. Economic growth for 2023 is projected to reach 5.2%.
Phillip Bank’s flexible car financing solutions are well-timed for Cambodia’s expanding car market. As the only Singaporean-owned commercial bank in the country, Phillip Bank is in a prime position to support the development of the automotive sector by offering competitive financing options to both individuals and businesses.
