Chinese billions bypass Cambodia’s car industry

China has poured $17.7 billion into Southeast Asia’s car sector since 2021, but Cambodia has seen only a fraction of that investment – and most of it has gone into tyres, not cars.

Figures presented at a forum in Tianjin last month show that Indonesia, Thailand, Malaysia and Vietnam together absorbed nearly 94% of Beijing’s pledges. Cambodia was grouped with Myanmar, Laos and Timor‑Leste as “catch‑up” markets, with little direct capital for vehicle assembly.

The contrast is stark. While Chinese tyre makers have committed more than $2.3 billion to Cambodian plants, the only disclosed Chinese‑owned car project is BYD’s $32 million facility in Sihanoukville – just 0.2% of the regional total. Most of Cambodia’s 15 assembly projects are funded locally, with Cambodian firms paying to put Chinese cars together using imported parts. Prime Minister Hun Manet admitted last month that “100% of components” are still imported.

Neighbouring countries have demanded stronger commitments. Thailand’s EV3.5 scheme requires carmakers to build locally in return for tax breaks, while Indonesia insists on rising levels of local content. Cambodia, by contrast, cut import duty on electric cars without attaching production conditions, making it cheaper to import than assemble.

The imbalance shows in exports. Cambodia shipped more than 30 million tyres in 2025, worth $1.38 billion, mostly to the United States. By comparison, its car plants can produce only about 35,000 vehicles a year.

Analysts warn that without tougher rules and incentives, Cambodia risks remaining a tyre hub rather than a car‑making centre. For now, Chinese money builds tyres in Cambodia, while Cambodian money assembles China’s cars.

-2026-10-02