Commerce minister Cham Nimol examines one of the electric vehicles on display at the official launch of modern EV models by H.H Auot Prestige on January 18. Commerce ministry
Cambodia, like the rest of the world, is experiencing a major rise in the adoption of electric vehicles (EVs), with 3,357 imported in 2024 alone.
The country aims to reach 30,000 light and heavy EVs and 740,000 electric motorcycles and tuk tuks by 2030.
This remarkable growth reflects the nation’s commitment to sustainable development, economic diversification and environmental protection, explained Minister of Commerce Cham Nimol.
During the official launch of modern EV models by H.H Auto Prestige CO., LTD on January 18, the minister emphasised the significance of this milestone for the Kingdom.
“The electric vehicle market is not only keeping pace with the demands of our growing economy but is also aligned with regional and global trends,” she said.
The minister highlighted the socioeconomic benefits of EV adoption, such as job creation, reduced dependency on fuel imports and decreased environmental impact.
“Cambodia’s journey into the EV market has been transformative, showing the world that we are committed to a sustainable future,” she added.
She said imports of electric vehicles have increased significantly in recent years, compared to only 50 in 2019, the year electric vehicles first entered the Cambodian market.
The rapid growth of the market in Cambodia has been supported by a series of government initiatives and policies. The government has identified the EV sector as pivotal for economic diversification and environmental sustainability.
Key measures to promote electric vehicles in Cambodia include a significant reduction in special tax rates, investment incentives and a focus on developing charging infrastructure.
A sub-decree in 2021 reduced the tax on pure electric vehicles from 30% to 10%, making EVs more affordable for consumers.
“Additionally, tax breaks have been introduced for local assembly plants and related industries, lowering the overall import tax rate from 50% to 90%,” explained Nimol.
“These measures reflect our government’s dedication to creating an environment conducive to EV growth, improving consumer welfare and achieving carbon neutrality goals,” he added.
The minister acknowledged the indispensable role of the private sector in driving the EV revolution.
The launch of the new EV models by a private company marks a major step in increasing market competitiveness and enhancing consumer options, she continued.
She said with a target of achieving 40% EV usage by 2050, partnerships like these are instrumental in fulfilling Cambodia’s long-term carbon neutrality strategy.
Cambodia unveiled the National Policy on Electric Vehicle (EV) Development 2024-2030 on July 11, 2023 with the goal of registering 770,000 EVs by 2030 to minimize environmental impact and diversify its economic base.
The policy sets a target for 2030 to register 25,000 light EVs, including cars, and 5,000 heavy EVs, such as trucks, for commercial purposes.
Additionally, the adoption of electric motorcycles is projected to reach 720,000, while electric tuk tuks are expected to number 20,000 within the same timeframe.
“We are not only aiming to increase the number of electric vehicles but also to build a sustainable ecosystem around them,” Nimol noted.
“This includes renewable energy sources, battery recycling programs, and skill development for the EV workforce,” she added.
The minister encouraged all stakeholders interested in investing in electric vehicles (EVs) to seize this opportunity to contribute to the sector's development.
Key areas include building supporting infrastructure, such as electric charging stations. She noted that there are currently 21 nationwide, with a total of 27 charging boxes, each with an assured supply of electricity from renewable energy sources.
Nimol said investors are also urged to focus on maintaining quality standards, providing after-sale services like maintenance and repair, and addressing environmental concerns, including battery waste management.
Additional priorities include developing skills in the EV sector, establishing a local supply base for quality, affordable parts and accessories to meet growing demand and exploring the feasibility of setting up EV assembly plants in Cambodia.
“Our efforts are geared towards improving efficiency and reducing costs,” Nimol explained.
“We are integrating public services under our jurisdiction into the Cambodian Data Exchange (CamDX) and the National Single Window (NSW). This integration will streamline procedures and provide significant cost savings,” she added.
Additionally, the commerce ministry is expanding its Commerce Call Center (1266) to enhance customer service by offering expert advice on domestic and international trade processes.
Promoting partnerships remains a priority, with the ministry engaging in dialogue through the Government-Private Sector Forum.
Nimol emphasised efforts to enforce laws such as the Competition and Consumer Protection Laws, prevent anti-competitive practices and protect intellectual property.
