Use of New Vehicles

The automotive market in Cambodia has grown significantly in the last few years. Pursuant to a report from the Ministry of Commerce, the total value of vehicle imports in 2025 expanded by 60% compared with the same period in 2024. Alongside this growth, the used vehicles continue to account for a significant share in the automotive market while Cambodia has not yet restricted importation of second-hand cars. 

In the absence of restrictive import policies, the continued importation of used vehicles has positioned Cambodia as one of the few countries in ASEAN that allows the import of used vehicles with limited safety standards compliance. Many countries impose age, emissions, or technical restrictions to promote cleaner, safer, and more fuel-efficient vehicles and to prevent the inflow of outdated technology into their countries.  

List of ASEAN Countries and Used-Car Import Policies:  

The continued importation of used vehicles may increase road safety risks due to their safety standards conditions. Unlike new vehicles, used vehicle imports are not subject to safety standards verification by manufacturers and the Institute of Standards of Cambodia. Additionally, the unauthorised distributors import used vehicles from unreliable sources without warranty support. Many of these vehicles are designed for foreign markets rather than Cambodian road conditions, raising concerns regarding technical specifications, safety performance, and long-term roadworthiness. The second-hand car import may also cause negative environmental impacts. Many of these cars are older models, they normally do not meet emissions and safety standards set by the Royal Government of Cambodia. This may lead to increased air pollution in the country.  

The continued importation of used vehicles without any restrictions has caused concerns for the Cambodian automotive industry and investment environment. The authorised distributors operate under the Cambodian legal frameworks facing many costs related to compliance, certification, warranties, and after-sales service. However, both unauthorised distributors and used car importers are able to avoid these obligations, which allow them to sell cars at lower prices. Therefore, the absence of second-hand vehicle restriction also contributes to market distortion, encouraging the growth of parallel market imports.  

Moreover, without a used-car restriction policy, the incentives for assembly plants in Cambodia are not sustainable. By setting an age limit on imported vehicles, the Government can protect local assemblers that focus on manufacturing new vehicles. With the assembly plant investment, Cambodian can access to more job, skill development program, and the transfer of modern technology in the automobile sector. In addition, the local assembly plants will face concerns over production expansion without the used-car restriction policy. They pay higher operation costs compared with importing used vehicles, that can be sold at lower prices with higher margins.  

Many used cars in the market can also cause economic and environmental costs. These vehicles consume more fuel, produce higher emissions that worsen air quality and increase operation costs for businesses and consumers. Most of the used vehicles do not follow safety standards that could cause the risk of mechanical failures and road accidents. Older vehicles do not have modern emissions standards, leading to higher air pollution, greater fuel consumption, and increased greenhouse gas emissions. As a result, the current regulations limits the development of a safe, competitive, and attractive automotive market, making it harder for Cambodia to follow regional best practices.