Cambodia 2017. High duties blocked new vehicles sales

Cambodian vehicles market

Cambodian vehicles market is full of contradictions and the increase of duties over new vehicles registrations generated a relevant flow of grey market for near zero kilometers cars while the official market growth was blocked. Full Year 2017 official sales declined 0.8%

Cambodian economy continues to sail along this year. Imports from key trading partner Thailand have proved robust in 2017, indicating solid private consumption growth. Tourist numbers have also grown at a healthy rate, thanks to an increase in Chinese visitors.

Moreover, ties with Japan, a main economic and strategic partner, were enhanced during a state visit, with the signing of two infrastructure deals worth over USD 244 million.

The Automotive industry is fast growing and in the 2017 over 60.000 vehicles were imported, of which near 8% registered for the first time and 92% pre-owned. Among this second category, many vehicles are with less than 100 km and just registered outside of Cambodia to avoid the high taxation imposed to the new vehicles.

Indeed, after the restriction imposed to imported vehicles by Myanmar in January 2017, Laos and Cambodia remain the only countries in the ASEAN region to have not yet banned pre-owned vehicles import, with Cambodia having increased last years duties on new vehicles.

For this reason the official new vehicles market stands far from the potential and in the 2017 have been flat at 4.424 (-0.8%) while the grey market flourished.

Tables with sales figures

In the tables below we report sales for the top brands

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