China's automotive industry pledged US$ 17.7 billion across ASEAN between 2021 and 2026, but 93.8% went to Indonesia, Thailand, Malaysia and Vietnam.

Cambodia has instead attracted more than US$ 2.3 billion in commitments from Chinese tyre manufacturers, while BYD's approximately US$ 32 million first-phase investment is the only publicly disclosed Chinese-owned investment in a Cambodian car assembly plant. Chinese brands are being assembled in Cambodia, while Chinese-owned factories produce tyres by the tens of millions.

However, ownership and financing of vehicle assembly plants are more mixed, with Cambodian companies financing several Chinese-branded projects.

93.8%: China's ASEAN car pledges went to four countries

According to Sun Xiaohong, former Secretary-General of the Automotive Internationalisation Committee at the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, China's automotive industry pledged US$ 17.7 billion in ASEAN between 2021 and 2026. Sun presented the figures on September 20th at the 22nd International Forum (TEDA) on Chinese Automotive Industry Development in Tianjin.

Indonesia received 36.4%, Thailand 31.6%, Malaysia 15% and Vietnam 10.8%. Together, they accounted for 93.8%, leaving about 6%, or approximately US$ 1.1 billion, for the rest of ASEAN. Sun placed Cambodia in a third tier with Myanmar, Laos and Timor-Leste, describing them as markets still catching up and being nurtured. No individual figure was provided for Cambodia. Across ASEAN, vehicle assembly accounted for 54% of China's automotive pledges and power batteries for 34.5%.

Six of seven: new Chinese overseas rules focus on pricing

On September 1st, China's Ministry of Commerce, Ministry of Industry and Information Technology and market regulator issued guidelines on overseas competition and compliance. Six of the seven rules concerning competitive conduct relate to pricing.

Sun said low-price competition is not sustainable for Chinese brands overseas. For the 2026-2030 15th Five-Year Plan, he used the slogan "stand firm, come back": remaining overseas through local production, supply chains and brand trust, while returning overseas earnings to China for research and development.

Thailand and Indonesia required such commitments before major investment flowed in. Thailand's EV3.5 scheme requires manufacturers importing EVs at reduced duty to produce two locally for every one imported in 2026 and three for every one imported in 2027. Indonesia requires 40% local content, rising to 60% from 2027 and 80% from 2030; Sun also said only nickel-based batteries receive full tax incentives.

Cambodia has no equivalent production conditions attached to its EV incentives.

Cambodia's automotive assembly projects

Cambodia has 15 automotive assembly projects, 10 of which are operating, with combined investment of nearly US$ 248 million. Prime Minister Hun Manet has put the Cambodian share at 28%, or about US$ 69 million, with 72% from foreign investors.

Disclosed projects include Toyota Tsusho Manufacturing's US$ 36.8 million Toyota plant, funded 90% by Japan's Toyota Tsusho and 10% by Cambodia's Kong Nuon Group; BYD's US$ 32 million plant, funded by BYD China; KNN Automotive's US$ 28 million Jetour plant, funded by Cambodia's KNN Group; RMA Automotive's US$ 26.8 million Ford plant, funded by Thailand-founded RMA Group, owned by the US-based Whitcraft family; TH Automotive's approximately US$ 20 million GAC plant, with Chevrolet also planned, funded by Cambodia's TH Group; and ZDG Assembly's US$ 11 million Lynk & Co project, whose funding source is undisclosed.

Toyota Tsusho owns 90% of the Toyota plant in the Phnom Penh Special Economic Zone and is the only Japanese investor in a Cambodian car plant with a disclosed investment amount. Ford's Pursat plant is financed by RMA Group.

Four Chinese brands are or will be assembled under their own badges, while GTV Motor produces rebadged Chinese models under a Cambodian brand. BYD's Sihanoukville plant is the only known Chinese-owned facility, with approximately US$ 32 million invested in its first phase, equal to roughly 0.2% of China's US$ 17.7 billion ASEAN pledge. TH Group and KNN Automotive are wholly Cambodian-owned, while ZDG Assembly has not disclosed its ownership.

Of approximately US$ 91 million disclosed for the four plants assembling Chinese brands, around US$ 48 million is Cambodian-funded. Thus, Cambodian companies are financing much of the assembly of Chinese-branded vehicles, while components continue to be sourced from overseas.

100%: Cambodia imports its car components

Opening the TH Group plant on September 17th, Hun Manet said Cambodia imports 100% of the hundreds of components used in vehicles, from floor mats to mirrors. "We import 100% of them from outside," he said.

He said Cambodia should not issue another 15 plant licences in the short term, stating: "We don't need another 15 licenses issued this year. Let's focus on helping these 15 survive and grow first." His export emphasis was more on components than finished vehicles. Cambodia "might be a bit slower compared to some neighboring countries" in complete-vehicle exports, but could become "a base to manufacture those components for regional distribution."

Cambodia's latest EV incentive programme points towards vehicle sales rather than production. Sub-Decree 52, effective April 1st, cut import duty on family BEVs from 35% to zero and family PHEVs from 35% to 7%. EuroCham's automotive committee estimates that assembling a BEV in Cambodia costs about US$ 4,000 more than importing a fully built vehicle. Unlike Thailand's production-linked EV incentives, Cambodia's duty reduction, introduced amid higher fuel prices, carried no production requirement.

Between March and August, 6,563 EVs were registered in Cambodia, creating longer-term requirements for parts, maintenance and warranty support.

US$ 32 million: only disclosed Chinese-owned car plant

Cambodia's 15 assembly projects have attracted nearly US$ 248 million, compared with more than US$ 2.3 billion committed by Chinese tyre manufacturers. Despite the growing presence of Chinese vehicle brands, BYD's approximately US$ 32 million first-phase investment remains the only publicly disclosed Chinese-owned investment in a Cambodian car assembly plant. The ownership of TH Group and KNN is Cambodian, ZDG's is undisclosed, and GTV assembles Chinese-origin vehicles under a Cambodian badge. The vehicle badge therefore does not necessarily indicate the origin of investment capital.

56.8%: Thai resale value and pricing concerns

Sun said Chinese brands in Thailand that comply with regulations and maintain warranty and after-sales services can retain up to 56.8% of their original value after three years. He said some models have been discounted to prices below their projected three-year residual values and that after-sales and warranty systems at some brands had effectively stopped operating.

A market research firm found that most Chinese passenger BEV brands cut prices by an average of 10.2% during the March 2024 Bangkok Motor Show. In July 2026, Thailand ordered inspections of EV dealers. Similar concerns exist in Cambodia, where used-car traders and owners told media that Chinese vehicles lose value faster than Japanese and other brands. The experience highlights the importance of warranty, servicing and after-sales systems alongside pricing.

US$ 1.4 billion: tyre exports dominate automotive trade

Cambodia exported more than 30 million tyres in 2025, while its assembly plants have capacity for approximately 35,000 vehicles annually, equivalent to more than 850 tyres for every vehicle of annual assembly capacity.

Chinese tyre manufacturers identified in company filings or Cambodian government approvals have committed more than US$ 2.3 billion to Cambodian plants, about nine times the investment in all 15 vehicle assembly projects combined and more than 70 times BYD's first-phase car investment. Wanli opened the first phase of its US$ 500 million Svay Rieng tyre factory in January, while Triangle announced an investment of approximately US$ 462 million.

Cambodia's tyre exports were worth around US$ 1.38 billion in 2025, up almost 58% year on year. The United States accounted for around three-quarters of the US$ 472 million of tyres exported during the first quarter of 2026.

Sun said tyre, rubber and chassis manufacturers were among the first automotive suppliers to expand overseas. Tyres were also among the components Hun Manet cited when opening the TH Group plant. The investment pattern therefore differs between the two sectors: Chinese capital dominates Cambodia's expanding tyre manufacturing industry, with more than US$ 2.3 billion committed, while Cambodian and other foreign investors provide much of the capital for assembling Chinese-branded vehicles.

Sun's "stand firm, come back" strategy calls for Chinese carmakers to establish long-term overseas operations rather than relying primarily on price competition. In Cambodia, Chinese automotive capital is concentrated most clearly in tyre manufacturing, while Cambodian capital is, in many cases, being used to assemble Chinese vehicles.