Henry Henderson
With the Royal Government’s recent reduction of taxes on electric and hybrid vehicles, as well as EuroCham’s upcoming Quarterly Green Business Talk on Electrifying Commercial Fleets, this was the perfect opportunity to catch up with Mark Selby, Director of Climate Investment at Mekong Strategic Capital and Chairperson of EuroCham’s Green Business Committee.
Mark answered three quick questions from Junior Communications Officer Henry Henderson, exploring the opportunities and challenges of fleet electrification in Cambodia and what it means for businesses. He also shares a bit about the Green Business Talk set to take place on 30 April.
EV sector is gaining momentum
Henry: Cambodia’s EV sector is gaining momentum, with growing adoption and government support. From your perspective, what is driving this shift, and why should businesses be paying attention now?
A few things are converging. The cost of EVs has come down significantly while quality has improved, and the vehicles on the market today are genuinely competitive with their ICE equivalents. At the same time, Cambodia imports all of its fuel, which means businesses running diesel or LPG fleets are permanently exposed to global commodity price swings. We’ve seen that play out sharply with the Middle East conflict pushing fuel prices significantly higher and raising concerns about supply. EVs offer a way to reduce that operational risk.
Read More: Opinion – The Green Exit is Cambodia’s Security Strategy
On top of that, the government has sent clear signals through tariff reductions for EVs, and charging infrastructure is expanding, driven largely by the private sector. Cambodia’s electricity grid is also getting cleaner as more solar capacity comes online, which strengthens the environmental and economic case for electrification over time.
For businesses, the question is shifting from “should we consider EVs?” to “when do we start?” The economics are increasingly favorable, and companies that move early will be better positioned as the market matures.
Biggest barrier remains upfront cost
Henry: For companies considering electrifying their fleets, what are the biggest barriers today, and where do you see the most practical opportunities for progress?
Mark: The biggest barrier remains upfront cost. EVs can still carry a higher purchase price than comparable ICE vehicles, and financing options have been limited, in part because the secondary market for EVs in Cambodia is still untested, which makes it harder for lenders to assess residual value and collateral risk. That’s starting to change. The recent tariff reductions are bringing down overall costs, and the Cambodia Climate Finance Facility is working with local financial institutions to develop more affordable lending products that can support EV fleet adoption, among other green investments.
Beyond financing, after-sales service networks for EVs are still maturing, particularly outside Phnom Penh. And charging infrastructure, while growing, remains a constraint for operators who can’t install chargers at their own premises.
Where I see the most immediate opportunity is in ride-hailing and light commercial delivery and logistics fleets. These are high-utilisation use cases where the total cost of ownership already favors EVs, and there’s a wide range of competitively priced EV models available locally. Two- and three-wheelers are an interesting opportunity as well, but challenges around charging access and battery swapping infrastructure mean that segment might take more time to develop.
Henry: At the upcoming EuroCham Green Business Talks on EV fleets, what key insights or takeaways can participants expect to gain from the discussion?
Mark: Attendees will hear directly from companies that are already operating EV fleets in Cambodia, including what’s working, what hasn’t, and what the economics look like compared to running ICE vehicles. The discussion will be based on local experiences and actual numbers.
We’ll also be covering the financing landscape and what options are becoming available to help businesses manage the upfront cost of making the switch. The goal is for participants to leave with a practical understanding of whether fleet electrification makes sense for their business, and how to get started.
