Cambodia Investment Review
BYD, China’s largest electric vehicle (EV) manufacturer, is making a significant move into Cambodia by setting up a vehicle assembly plant in the Sihanoukville Special Economic Zone (SSEZ). With an investment of $32 million, the facility will assemble both electric and fuel-powered vehicles, marking a key milestone in Cambodia’s growing automotive industry.
According to a government news site AKP the Council for the Development of Cambodia (CDC) has approved the project, which is expected to generate over 200 jobs and contribute to the country’s shift towards greener transportation. The plant will initially import components for assembly but aims to incorporate locally sourced materials as production scales up.
Speaking about the investment, H.E. Sun Chanthol, Deputy Prime Minister and First Vice President of CDC, stated that the factory will begin producing EVs in November 2024. He emphasized that BYD’s decision to enter Cambodia reflects investor confidence in the country’s political stability and economic potential.
BYD’s Expansion Plans in Cambodia
Beyond vehicle assembly, BYD is investing in Cambodia’s EV infrastructure by:
- Installing 200 EV charging stations nationwide to support the growing market.
- Opening two service centers to enhance after-sales support for Cambodian consumers.
- Providing free home or condo charging portals for EV buyers, making adoption more accessible.
BYD joins other major automakers, including Ford, Toyota, and Hyundai, in establishing assembly operations in Cambodia. With government incentives and increasing demand, the country is positioning itself as an emerging hub for the regional EV industry.
Cambodia’s EV Market Sees Rapid Growth
According to the Ministry of Public Works and Transport, Cambodia registered 2,253 EVs in 2024, a staggering 620% increase from the previous year. In comparison, the country also recorded 413,067 fuel-powered vehicles, with motorcycles making up the majority at 353,603 units.
The Cambodian government has set ambitious EV adoption goals, targeting:
- 40% of all cars and urban buses to be electric by 2050.
- 70% of motorcycles to transition to electric models.
Government policies, such as reduced import duties on EVs—which are 50% lower than those for traditional combustion engine vehicles—are making electric mobility more attractive to consumers.
Denza Expands into Cambodia’s Luxury EV Segment
As part of its expansion, BYD’s luxury EV brand, Denza, launched its first Cambodian showroom—the Denza Harmony City Mall Showroom in Phnom Penh—on July 14, 2024. BYD offers a range of EVs catering to various market segments, from the affordable BYD Cambodia entry model ($19,800) to the high-end Denza luxury line ($80,800).
We aim to meet the diverse needs of Cambodian consumers, from those seeking cost-effective options to those interested in high-end models,” said Mori Gong, Country Business Representative for Harmony Auto Cambodia told Cambodia Investment Review last year.
Despite the promising growth, Cambodia’s EV industry faces infrastructure challenges, particularly in rural areas. While there are currently 18 charging stations across the country, BYD is working closely with the government and private sector to accelerate expansion efforts.
The company’s vehicles offer a driving range of 300 to 2,000 kilometers, ensuring they meet both urban and long-distance travel needs. Gong remains optimistic about Cambodia’s EV future, stating that “the transition will take time, but we are committed to supporting the market’s development.”
BYD’s Role in Cambodia’s Green Transition
With Southeast Asia emerging as a key growth market for EVs, BYD is positioning itself as a leader in Cambodia’s automotive transformation. The company’s long-term vision aligns with the government’s sustainability goals, aiming to significantly reduce carbon emissions through widespread EV adoption.
“Our aim is to contribute significantly to Cambodia’s EV adoption goals,” Gong emphasized. “This investment is not just about selling cars—it’s about fostering a sustainable, electric future that supports Cambodia’s environmental and economic ambitions.”
As Cambodia’s EV sector continues to gain momentum, BYD’s presence and infrastructure investments are set to play a pivotal role in shaping the country’s transition towards a cleaner and more sustainable transportation landscape.
