Sihanoukville: China’s largest electric car manufacturer BYD has decided to step into Cambodia by investing in a vehicle assembly plant in the Sihanoukville Special Economic Zone, Preah Sihanouk province.

According to Agence Kampuchea Presse, the Council for the Development of Cambodia (CDC) has issued a permit for the BYD car assembly project, with a total investment of US$32 million and expected job opportunities of over 200. H.E. Sun Chanthol, Deputy Prime Minister and CDC First Vice President, announced that BYD will assemble two types of vehicles – electric vehicles and fuel-powered vehicles.

Initially, BYD will import components from abroad to assemble locally, with plans to use local components in the future. The decision by BYD to establish a footprint in Cambodia reflects investors’ confidence in the country’s political stability. The company plans to open two service centres and install 200 electric vehicle charging stations across Cambodia, supporting the infrastructure needed for a sustainable e
lectric vehicle market.

BYD will join other global automotive giants like Ford, Toyota, and Hyundai, which have already established vehicle assembly factories in Cambodia. In 2024, Cambodia registered a total of 2,253 electric vehicles, marking a 620 percent increase over 2023, when 133 new EVs were registered, according to a report from the Ministry of Public Works and Transport.

The ministry also registered 413,067 fuel-powered vehicles, with motorcycles accounting for the largest share at 353,603 units, followed by light vehicles at 54,692 units and heavy vehicles at 5,841 units. The Royal Government of Cambodia is committed to achieving significant electric vehicle adoption by 2050, aiming for 40 percent of electric cars and urban buses, and 70 percent of electric motorbikes to reduce carbon emissions.

The Ministry of Public Works and Transport has been encouraging the use of electric vehicles and motorcycles, highlighting their environmental benefits and cost savings. “The increase in EV usage aligns
with a rapidly accelerating global trend, and Cambodia is witnessing a parallel development of its own EV sector,” the ministry’s spokesperson H.E. Phorn Rim stated recently.