EV registrations increased by 151% in the first half of 2026, driven largely by the conflict in the Middle East and government policy measures. Chinese, Japanese, Korean and American carmakers are establishing assembly operations in the Kingdom.

According to a report from the Ministry of Public Works and Transport (MPWT), EV registrations in Cambodia increased by 151% between January and June 2026 compared with the same period in 2025.

A shift accelerated by geopolitics

One short-term factor associated with this increase has been rising fuel prices linked to the conflict in the Middle East. According to MPWT spokesperson Phan Rim, cited by a news agency, the rise in registrations began in March 2026 following disruptions to global fuel markets.

The experience of Chou Sivly, a 30-year-old merchant who switched to an electric vehicle, reflects this trend. Her monthly fuel expenditure previously ranged between US$ 150 and US$ 200 when using a petrol-powered vehicle before she purchased a Chinese-made Dongfeng Forthing S7. According to the ministry's spokesperson, EVs reduce fuel costs while eliminating tailpipe emissions.

An industrial strategy backed by Phnom Penh

This increase in registrations coincides with the Cambodian government's broader policy framework for the sector. The Kingdom has introduced its National Policy on the Development of the Electric Vehicle Sector 2024-2030, aimed at encouraging investment, expanding charging infrastructure and aligning Cambodia's economic development with global trends.

To support these objectives, authorities have introduced a range of incentives. Since April 1st, 2026, Phnom Penh has removed import taxes on electric vehicles and related equipment, a move attributed to rising fuel prices. This measure complements other initiatives already in place, including reduced special duties on EVs, amendments to road traffic legislation to permit EV registration, and the expansion of charging infrastructure.

According to the ministry, promoting electric vehicles will help reduce fuel consumption and strengthen the Kingdom's energy security, given Cambodia's dependence on imported oil. The country is targeting EVs to account for 40% of its passenger vehicle fleet by 2050, while electric motorcycles and urban buses are expected to comprise the majority of their respective segments as part of its carbon neutrality strategy.

Global automakers expand local operations

Several international manufacturers have established or announced assembly operations in Cambodia. BYD has begun constructing a completely knocked down (CKD) assembly plant on a 12-hectare site within the Sihanoukville Special Economic Zone. The first phase represents an investment of approximately US$ 32 million, with production scheduled to begin in early November.

According to a local daily, Cambodia currently hosts vehicle assembly plants, including those of Ford, SsangYong, Hyundai, Kia, GTV and Toyota. Another local daily reported that the number of operational assembly facilities has expanded under the government's Automotive and Electronics Sectors Development Roadmap. Ford, through the RMA Group, operates an assembly facility in Pursat province, while GAC, Toyota and BYD are among the vehicle brands present in the Cambodian market.

Growth in the automotive sector has also been associated with manufacturing employment, with localised employment gains estimated at up to 13%.

A still-small market

EVs remain a small proportion of Cambodia's overall vehicle fleet.

According to Thong Mengdavid, Deputy Director of the China-ASEAN Studies Center at the Cambodia University of Technology and Science, EV adoption can improve urban air quality by reducing localised pollution in densely populated areas. He also stated that increasing EV adoption may influence investment decisions as consumer demand for electric mobility grows.