Amid increasing investments in clean mobility and industrial development, the approval of new electric vehicle assembly projects reflects Cambodia's ongoing shift towards automotive manufacturing, with these initiatives forming part of a US$ 2.5 billion investment influx approved between January and March.

The Council for the Development of Cambodia (CDC) approved two new investment projects for electric vehicle (EV) assembly facilities in the first quarter of 2026.

According to a report released by the CDC last week, the newly approved projects include ZDG Assembly, which will establish a US$ 11 million fixed-asset vehicle assembly plant in Kandal province. The facility will assemble vehicles under the Lynk & Co brand.

Another project has been undertaken by ZO Motors Cambodia, with an investment capital of US$ 46 million allocated to an EV assembly plant located within a Special Economic Zone in Pursat province.

ZO Motors, supported by Japanese and Chinese partners, is among several international firms operating in Cambodia's EV sector.

The Minister of Mines and Energy, Keo Rottanak, recently urged both citizens and the private sector to accelerate the transition from internal combustion engine vehicles to EVs in order to reduce costs.

"In a period of rising global fuel prices, the adoption of EVs offers a viable option for cost savings and the use of renewable energy," Rottanak stated.

The expansion of EV assembly facilities aligns with the National Policy on the Development of Electric Vehicles 2024-2030, which aims for EVs to account for 40% of cars and 70% of motorcycles in the country by 2050.

In recent years, Cambodia's automotive sector has grown, driven by government policies promoting a free-market economy and attracting investment, contributing to economic activity and employment.

The development of the green mobility sector has coincided with an increase in renewable energy production, which accounts for more than 63% of the national power grid.

As of March 2026, Cambodia had 10 operational vehicle assembly plants producing a range of passenger cars, trucks, and EVs, including models from manufacturers such as Ford Motor Company, Hyundai Motor Company, Toyota Motor Corporation, and BYD Company.