While presiding over the official launch of the Peugeot 408 2025 Series, H.E. Mrs Cham Nimul, Minister for Trade, encouraged investment in the electric vehicle (EV) market, citing the potential to cut costs, improve fuel efficiency and reduce emissions, ‘which will benefit both consumers and the environment’.
H.E. the Minister made these remarks as she presided over the official launch of the Peugeot 408 2025 Series, which took place at the Premie Centre Sen Sok on 14 March. The event was attended by H.E. Jacques PELLET, French Ambassador to Cambodia, as well as other dignitaries, business leaders and guests.
The Minister underlined the crucial role of private sector investment and public-private partnerships in the country's economic and social development. The Ministry of Commerce is committed to fostering fair competition to encourage innovation, productivity and economic efficiency,’ she said.
With regard to the launch of the Peugeot 408 2025 Series, the Minister of Commerce congratulated RMA Cambodia on its development efforts and its decision to expand the presence of the Peugeot brand in the Cambodian market.
‘RMA Cambodia's establishment of a car assembly plant, which has generated many jobs and strengthened the competitiveness of the Cambodian automotive market, has benefited consumers by providing quality vehicles at reasonable prices, meeting a variety of needs and preferences,’ she said.
The electric vehicle (EV) market in Cambodia is experiencing significant growth, driven by government incentives, environmental concerns and technological advances. In 2024 alone, 3,357 electric vehicles were imported into the country.
There are currently 21 electric vehicle charging stations operational in the country, each equipped with several charging boxes powered by renewable energy sources.
The government has reduced import duties on EVs and lowered special tax rates to make them more affordable. For example, the tax on pure electric vehicles has been reduced from 30% to 10% in 2021.
Future prospects
National Electric Vehicle Policy (2024-2030): Cambodia aims to register 30,000 electric cars, 720,000 electric scooters and 20,000 three-wheeled electric vehicles by 2030. This policy focuses on expanding EV adoption, strengthening infrastructure and promoting economic and environmental benefits.
By 2050, Cambodia aims to achieve 40% EV use as part of its carbon neutrality strategy. This involves building a sustainable ecosystem around EVs, including renewable energy sources and battery recycling programmes.
The market is being driven by government incentives, growing environmental concerns and advances in EV technology. However, challenges such as high initial costs and limited charging infrastructure need to be addressed.
Challenges and opportunities
The high initial costs of EVs, the limited recharging infrastructure and the need for public awareness campaigns are major challenges. In addition, there is a risk of reduced tax revenues from fuel sales and vehicle registrations.
The EV sector offers opportunities for economic diversification, job creation and reduced dependence on fossil fuels. Investors are encouraged to focus on infrastructure development, quality standards and environmental sustainability.
Overall, the Cambodian electric vehicle market is set for significant growth, thanks to ambitious government policies and growing consumer demand. However, addressing the infrastructural and economic challenges will be essential to achieving long-term sustainability goals.
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