Cambodia Automobile Industry News

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Demand for quality as car sales recover

Thursday, 01 July 2010 15:00
May Kunmakara

VEHICLE importers saw sales of new cars rise sharply in the first half of this year, compared with the same period of 2009, with dealers reporting demand soaring between 20 and 50 percent.

Although many firms declined to reveal exact sales figures to the Post on Wednesday, dealers across the board said the industry had entered a period of sales growth following the economic crisis.

Naritat Motorcare Cambodia Co Managing Director Long Narith, who runs a Phnom Penh-based firm, said sales of imported Nissans rose about 20 percent during the first half of this year, after seeing a 50 percent decline during 2009.

Nissan, whose Thai branch chief Carlos Ghosn said Wednesday that he sees Bangkok as a strategic export hub for the company, aims to sell about 500 cars in Cambodia annually. Narith said he was confident of meeting the target this year.

“The demand for new car models is picking up in line with the recovery of the global economy after hitting revenues hard last year,” he said.

He said that fluctuating oil prices should not affect sales, and that he and aims to import a new high-price model in response to demand.

Meanwhile, Seng Voeung, manager of the capital’s R M Asia Co said his firm’s Ford imports had gradually increased with quarter-on-quarter growth of about 20 percent. Successful bids to supply cars to government institutions had contributed to this, he said.

However, despite strong growth, the firm is still expecting below target sales for 2010, in part due to increased competition in the car market.

“So far, we have sold 170 cars and are expecting to sell about 350 cars at the end of this year. [This] is out of our target of 400,” he said.

Auto Sales (Cambodia) facility manager Chanchal Sinh said sales of Chevrolets surged about 50 percent in the first half of this year, and that Cambodians are increasingly looking for safe, fuel-efficient cars.

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Kingdom car sales up in 2011

May Kunmakara
Friday, 06 January 2012

Many of the Kingdom’s authorised car dealers surpassed their sales targets for 2011, with some also reporting difficulty in meeting demand as natural disasters impacted supply chains.

RMA Asia Co, which imports Ford Motor vehicles, last year exceeded its sales target of 400 units by 10 per cent, resulting in a 30 per cent year-on-year increase, according to General Manager Seng Voeung.

“We noticed that after we recovered from the global financial crisis, which forced people to cut their expenses, they started to spend more on new modern goods like new cars,” he said.

Toyota Cambodia also saw an increase in demand, according to President Kong Nuon. However, the company was unable to meet many customer orders because Japan’s earthquake and tsunami in March and floods in Thailand late last year hit supply chains.

As a result, Toyota Cambodia sold only 450 to 500 units in 2011, far below its target of between 1,300 and 1,500 units, but a small increase over 2010, he said.

Long Narith, managing director of Narita Motorcare Cambodia, which imports the Nissan brand, noted a 15 per cent year-on-year increase in sales last year.

But Narita also was unable to meet demand as its factory in Thailand was impacted by the floods, he said.

Chinese brand Great Wall Motor saw higher sales early in the year but a decline in later months, although for a different reason: a change in loan requirements by the country’s banks.

“The banks started requiring collateral in July, and sales dropped since then,” Peang Mann, chairman and CEO of Great Wall seller Worldwide Garage, said.

He estimated that Worldwide Garage sold about 70 per cent of its 2011 target, though he would not disclose exact figures.