PHNOM PENH, 20 October 2025 – Cambodia’s automotive sector continues to perform strongly in 2025, though the recent border conflict with Thailand has reshaped consumer sentiment and disrupted key supply chains.
Following heightened tensions and temporary border closures, many Cambodian consumers have shifted their preferences towards brands without operational or ownership links to Thailand. This change in perception has been evident across dealerships nationwide, with sales momentum moving in favour of non-Thai-affiliated manufacturers.
Among those affected is RMA Cambodia, the authorised distributor of Ford. Although RMA is a global organisation, its headquarters are based in Thong Lor, Bangkok, a fact noted on its official website. During the border dispute, this association prompted some hesitation among Cambodian buyers.
In response, RMA Cambodia’s CEO publicly reaffirmed the company’s international identity, emphasising that RMA operates as part of a global network rather than as a Thai enterprise. While this clarification helped allay concerns, the company still faced a moderate impact from evolving consumer perceptions.
Toyota, another major player with assembly operations in Thailand, experienced supply-side challenges rather than reputational issues. Temporary border closures slowed logistics and vehicle imports, exposing vulnerabilities in the flow of spare parts and components from Thailand to Cambodia.
Industry analysts warn that these disruptions could have longer-term implications if logistics routes are not diversified to reduce dependency on cross-border movement.
Conversely, brands without production or distribution links to Thailand have maintained steady growth. The overall market remains dynamic: according to the Khmer Times, new car sales in Cambodia rose by 48% in Q1 2025 compared to the same period a year earlier.
One of the standout performers has been BYD, which continues to dominate the electric and hybrid vehicle segment. Data from the Ministry of Public Works and Transport show that Cambodia recorded 2,253 EV registrations in 2024 — a 620% increase on 2023.
BYD accounted for nearly 30% of these registrations, with 658 units. The company’s industrial footprint is also expanding; in April 2025, BYD broke ground on a new factory in Sihanoukville with a planned annual capacity of 10,000 vehicles.
MG has also extended its momentum, particularly in the SUV category, supported by significant investments in aftersales services. According to Cambodia Investment Review, the brand recorded 50% sales growth in 2025. These improvements have bolstered consumer confidence in a market historically challenged by the prevalence of damaged or substandard parallel import vehicles.
The EV market has become increasingly competitive with the entry of multiple new Chinese automakers offering a broader range of affordable models.
However, the influx of parallel imports, often vehicles intended for lower-standard domestic markets rather than export-grade versions, has raised concerns over safety and quality. This trend is expected to ease as Chinese authorities tighten controls on grey exports.
Once fully implemented, these measures could reshape Cambodia’s automotive landscape by improving quality standards and reducing the influx of uncertified vehicles entering through informal channels.
Despite recent geopolitical and logistical headwinds, Cambodia’s automotive industry remains on a robust growth trajectory. According to ReportLinker, total vehicle registrations are projected to reach around 5,300 units by 2028, up from roughly 4,900 in 2023.
The market’s ongoing diversification, coupled with increasing competition in the EV and hybrid segments, is creating new opportunities for both consumers and manufacturers. As regional tensions subside and regulatory frameworks strengthen, the sector is poised to evolve toward higher quality, transparency, and consumer trust.
