New electric-car factory will move Cambodia's green push into top gear

The number of electric vehicles in use in Cambodia is expected to begin rising significantly when a BYD assembly plant begins producing new vehicles late this year.

BYD of Shenzhen, South China's Guangdong province, also plans to set up two service centers and install 200 electric vehicle charging stations across Cambodia, underscoring its commitment to supporting the infrastructure needed for a sustainable electric vehicle market.

The plant opening this year, in the coastal city of Sihanoukville will involve investment of more than $30 million and is expected to be able to turn out 10,000 vehicles a year.

"BYD has already secured a location in the Sihanoukville Special Economy Zone, and work is underway to prepare the land for construction," said Sun Chanthol, first vice-president of the Council for the Development of Cambodia.

Chanthol said the factory's proximity to the Sihanoukville Autonomous Port, the country's largest international port, would make it easier for the company to import parts and components.

Chanthol said that the trend of using BYD cars in Cambodia is on the rise. Recently, BYD also introduced new vehicle models into the Cambodian market, such as the BYD Sealion 5 and BYD Atto 2, which it described as "not only high quality and equipped with advanced technology, but also highly fuel-efficient and affordably priced for the Cambodian market".

Cambodia's Prime Minister Hun Manet said last year that BYD's setting up an assembly plant was a milestone in the government's efforts to attract international investors to the country.

The Ministry of Public Works and Transport recently reported that the number of registered electric vehicles in the country had increased significantly, to 2,253 last year, compared with 313 in 2023.

The ministry also registered 413,067 fuel-powered vehicles, of which motorcycles accounted for the largest share, 353,603, followed by light vehicles, 54,692, and heavy vehicles, 5,841.

To help meet carbon emissions targets the government has committed to ensuring that by 2050 40 percent of electric cars and urban buses will be electric, as will 70 percent of motorcycles.

To achieve the target, the Ministry of Public Works and Transport has been encouraging people to use electric powered transport, which is seen not only as environmentally friendly but more economic.

"The increase in EV use aligns with a rapidly accelerating global trend, and Cambodia is witnessing a parallel development of its own EV sector," a ministry representative said recently.

Hong Vanak, an economist with the Royal Academy of Cambodia, said the opening of BYD's assembly plant will deliver significant benefits to Cambodia, including creating jobs, upgraded work skills, increased tax revenue, an increase in vehicle part manufacturing plants and profits from exports to international markets.

"In addition to all these benefits, Cambodia could also boost its reputation and attract more international companies to invest in the country," he said.

The opening of the Sihanoukville factory is also likely to encourage more Cambodians to buy EVs, given that they may be more affordable than vehicles now available, he said. People would also have fewer concerns about the availability of parts.

THE PHNOM PENH POST, CAMBODIA