Exotic Cars in Cambodia

[KhmerArchitect]

Volkswagen to be sold in Kingdom


CAMBODIA’S authorised distributor for Mercedes-Benz will also be selling Volkswagen vehicles in May, as it hopes to cash in on higher growth in the mass-market car sector.

Though the sole distributorship deal was signed in 2009, Hung Hiep Group received approval last week from VW to distribute three models, the company’s CEO Pily Wong said. The Passat sedan and Tiguan CUV will sell for about $60,000, while the Touareg SUV will cost $100,000, he said.

Fifteen cars will be imported each month. The first batch, which is currently in production, has already been 80 per cent pre-sold, Wong said.

The company has been Mercedes’ sole distributor here for more than 50 years. But the luxury car market here is growing “very slowly”, at about three to five per cent each year, Wong said. “The country’s economy is growing, but it’s the same people who are getting rich.”

While demand for mass-market cars is “not big” either – with about 10 per cent growth each year – “compared to the luxury segment it is a lot”, Wong said. He hopes to sell 100 Volkswagen cars in the first year.

In 2009, the company had been specially permitted to bring in 100 Volkswagen cars left unsold by other distributors. They were all snapped up within a few months, he said.

With its official sales launch this May, Volkswagen will join more than 10 mass-market car marques already being distributed officially in Cambodia.

An industry player said that although mass-market cars have a large market now, new ones, sold through authorised dealers, do not.

About 30,000 mass-market cars are bought here every year, mostly through the grey market or second-hand. Only about 10 per cent are bought through authorised dealers, said Seng Voeung, general manager of RMA Asia Co, which imports Ford vehicles.

“Everyone is trying to get in right now to get a slice of the small cake,” he said.

[Asian]

Originally Posted by KhmerArchitect

Volkswagen to be sold in Kingdom

CAMBODIA’S authorised distributor for Mercedes-Benz will also be selling Volkswagen vehicles in May, as it hopes to cash in on higher growth in the mass-market car sector.

Though the sole distributorship deal was signed in 2009, Hung Hiep Group received approval last week from VW to distribute three models, the company’s CEO Pily Wong said. The Passat sedan and Tiguan CUV will sell for about $60,000, while the Touareg SUV will cost $100,000, he said.

Fifteen cars will be imported each month. The first batch, which is currently in production, has already been 80 per cent pre-sold, Wong said.

The company has been Mercedes’ sole distributor here for more than 50 years. But the luxury car market here is growing “very slowly”, at about three to five per cent each year, Wong said. “The country’s economy is growing, but it’s the same people who are getting rich.”

While demand for mass-market cars is “not big” either – with about 10 per cent growth each year – “compared to the luxury segment it is a lot”, Wong said. He hopes to sell 100 Volkswagen cars in the first year.

In 2009, the company had been specially permitted to bring in 100 Volkswagen cars left unsold by other distributors. They were all snapped up within a few months, he said.

With its official sales launch this May, Volkswagen will join more than 10 mass-market car marques already being distributed officially in Cambodia.

An industry player said that although mass-market cars have a large market now, new ones, sold through authorised dealers, do not.

About 30,000 mass-market cars are bought here every year, mostly through the grey market or second-hand. Only about 10 per cent are bought through authorised dealers, said Seng Voeung, general manager of RMA Asia Co, which imports Ford vehicles.

“Everyone is trying to get in right now to get a slice of the small cake,” he said.

All of them are overpriced. Lots over.

[SeeMacau]

Good move they also bring Volkswagen, very few Volkswagen on the streets in Cambodia

[SeeMacau]

Carving a niche in luxury cars

http://phnompenhpost.com/20130308618...xury-cars.html

Chief Executive Officer Pily Wong sits in his showroom next to a Mercedes Benz on Wednesday. Photograph: Hong Menea/Phnom Penh Post



The first distributor of luxury cars in Cambodia, Hung Hiep Group, which represents Mercedes-Benz, has seen the car market grow over the years. The company’s chief executive, Pily Wong, discusses the industry’s latest developments with the Post’s Low Wei Xiang.



How did Hung Hiep Group start importing Mercedes?

We were founded a century ago in China by my great-great-great-grandfather as a commodity trader, and expanded to other countries including Cambodia. We became the largest automotive importer in Cambodia in the 1960s, working with General Motors, Chrysler and Mercedes-Benz among others. In the 1970s, during the Khmer Rouge regime, my family fled to Hong Kong, where I was born. We re-started the company with the same name, sourcing uniforms, gloves and shoes from China for companies including Mercedes. When peace returned to Cambodia in 1991, Mercedes asked if we would like to resume our business there. My grandfather, who always loved the country, immediately accepted, and that’s how we began distributing Mercedes in Cambodia again.



What kinds of cars are popular in Cambodia?

The biggest models are the most popular, such as the Mercedes-Benz S-Class, which cost about $150,000 each. Our sales vary each year from 20 to 60 units, with 80 per cent going to the S-Class. The bulletproof models are also popular. Big cars are a symbol of power and success − that’s why size matters for our customers.

There’s also a big need for SUVs here. When you travel beyond Phnom Penh, the road conditions are not that good, and flooding also occurs during the rainy season.



With news in recent months of other luxury models like Porsche and BMW entering the distribution market, are you worried?

I don’t think they really are competitors because each brand has its unique positioning. We target people who seek elegance, comfort, safety and advanced engineering. When people buy a BMW they want raw power and sportiness. I see BMW competing more with Porsche than Mercedes.

Even though we were the first distributors of luxury cars here, we never actually had a monopoly because grey-market importers still bring in cars way before they are officially distributed. I prefer to work closely with official importers than grey-market importers because the competition is more level.

Tell us about the grey market, and is it a big problem for you?
Official distributors bring in cars that are custom-built for the country directly from factories. Grey-market importers bring in cars that may be sub-standard or unsafe because the specifications are not
customised for that country.

For Mercedes-Benz, because the road conditions here can be harsh, our cars have different suspension settings, and have features like shielding below the cars, air-con boosters, special fuel systems and filters that grey-market cars don’t have.

The government does not currently regulate car imports, so they are called “grey market” because they are not technically illegal.

If there were no grey market, our business would be boosted by 50 per cent. It’s a big problem because we invest a lot in the country, like bringing in original spare parts, training our staff and investing in the customer’s buying experience, so we need to have a certain return on investment.

Some customers also think that buying from official distributors is always more expensive, and they don’t do any research before buying grey-market cars.

You were one of the founders of the Cambodia Automotive Industry Federation in September last year. What have been the highlights so far?
The organisation is still very new, so we are still doing things step by step. Our first achievement is that we are organising the first official Phnom Penh International Motor Show on Diamond Island from March 15 to 17. The latest models of each participating distributor will be on display. After this, we will start lobbying the government to regulate the industry.



What future plans does your company have?

Currently, we are the distributor for brands like Lee Kum Kee, Mercury Marine and Kalmar, but about 60 per cent of our business still comes from Mercedes-Benz. We may try to bring in the new A-Class or CLA.

The car market is already quite saturated, so over the next five years we plan to further diversify our portfolio. We will focus more on consumer products, probably in line with what we are already doing, such as in F&B and agriculture.

We have no plans for an assembly plant here at the moment. To have a proper one, you need to make 4,000 units a year, which is a large volume.

[KhmerArchitect]

lol, repeated post.

[AsianDragons]

oops

[AsianDragons]

ok i deleted those posts, i just dont realise these things fast enough

[AsianDragons]

are there still lots of khemarak phumin number plates on expensive cars

[KhmerArchitect]

image hosted on flickr

[SeeMacau]

Srey Sothea's car garage - the owner of 7NG Group

A Hummer, a Smart Roadster, a Dodge Charger, a Porsche Boxter, a Ferrari and a Mercedes SLS

http://goingphnomandon.files.wordpre...pg?w=460&h=306

[pufulufulu]

^ i think thats an slr rather than the sls but anyways, nice cars

[SeeMacau]

Yeah nice cars and they are no longer strange to the locals

[SeeMacau]

http://img.photobucket.com/albums/v2...7154072img.jpg



http://img.photobucket.com/albums/v2...7154087img.jpg



http://img.photobucket.com/albums/v2...7154085img.jpg