Industry observers said the expansion of the automotive sector underscores Cambodia's growing consumer base and the gradual modernisation of its transport landscape, with newer and cleaner vehicles playing an increasingly prominent role.

Cambodia's new car market recorded robust growth in 2025, with new vehicles accounting for around 55% of total sales, as spending on imported passenger cars approached US$ 1 billion in the first eleven months of the year, according to industry data.

The trend marks a decisive shift away from used vehicles, whose market share fell to 45%, according to Soeun Dara, Executive Director of the Cambodia Automotive Industry Federation (CAIF). He said the narrowing price gap between new and used vehicles has played a key role in changing consumer preferences.

"In 2025, new cars continued to grow, controlling a market share of about 55%, while used cars declined to 45%," Dara told a local daily. "Used cars will continue to lose ground because the prices of new cars - both imported and locally assembled - are now relatively low and increasingly comparable with used vehicles."

Official figures from the General Department of Customs and Excise of Cambodia show that between January and November 2025, the Kingdom spent approximately US$ 971 million on importing passenger cars, reflecting strong domestic demand despite global economic uncertainty.

According to Dara, the bulk of imports comprised small and medium-sized family vehicles, including sedans, SUVs and multi-purpose vehicles (MPVs), with MPVs recording particularly strong growth in 2025 as households and businesses sought more versatile transport options.

One of the most notable developments in the market has been the rapid rise in electric vehicles (EVs). Dara said EV usage doubled compared with 2024, while hybrid vehicles also recorded a sharp increase. "The growth in electric and hybrid vehicles is no longer marginal," he said. "It reflects a structural change in consumer behaviour, especially among middle-income buyers who are increasingly conscious of fuel costs and long-term value."

CAIF identified three main factors driving the surge in car imports.

First, demand for daily personal transport has increased as urbanisation accelerates.

Second, business-related demand has expanded significantly, with companies and enterprises, both small and large, requiring more vehicles to support operations and expansion.

Third, rising incomes have enabled more consumers to purchase new cars.

Looking ahead, Dara said the outlook for 2026 remains cautiously optimistic. New cars are expected to maintain a market share of between 55% and 60%, while used vehicles are projected to account for 40% to 45% of the market.

However, he warned that supply volumes could remain flat or decline slightly due to external pressures, including the Cambodia-Thailand border dispute, which continues to weigh on economic activity.

"As a result, sales are likely to soften slightly in the first half of 2026," Dara said. "Nevertheless, we expect the market to recover in the second half of the year, supported by demand and gradual improvements in economic conditions."