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

The Council for the Development of Cambodia (CDC) has issued a permit for the BYD car assembly project, with a total investment of $32 million and expected job opportunities of over 200.

Deputy Prime Minister and CDC First Vice President Sun Chanthol said that BYD will assemble two types of vehicles – electric vehicle and fuel-powered vehicles.

“BYD is preparing to build a vehicle assembly plant in the Sihanoukville Special Economic Zone, and in November this year, we will see EVs produced in the factory in Cambodia,” he told reporters upon a meeting this morning.

Initially, BYD will import components from abroad to assemble locally, and in the next step, the company will use local components for assembly, according to Sun Chanthol.

The BYD’s footprint in Cambodia reflects investors’ confidence in the strong political stability in the kingdom, he said.

BYD has planned to establish two service centers and install 200 electric vehicle charging stations across Cambodia, underscoring their commitment to supporting the infrastructure needed for a sustainable electric vehicle market.

BYD will join other global automotive giants in Cambodia such as Ford, Toyota, and Hyundai having their vehicle assembly factories in Cambodia.

In 2024, there were a total of 2,253 registered EVs in Cambodia, an increase of 620 percent over 2023, which registered 133 new EVs, according to a report from the Ministry of Public Works and Transport.

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

The Royal Government of Cambodia has committed to achieving 40 percent of electric cars and urban buses, and 70 percent of electric motorbikes by 2050 in order to reduce carbon emissions.

To achieve the target, the Ministry of Public Works and Transport has been encouraging people to use EVs and electric motorcycles, as they are environment-friendly and save users’ money.

“The increase in EV usage aligns with a rapidly accelerating global trend, and Cambodia is witnessing a parallel development of its own EV sector,” ministry spokesperson Phorn Rim said recently.