Chinese electric vehicle giant BYD is considering building a new production plant in Cambodia, potentially marking its second factory in Southeast Asia after Thailand.
BYD to build second EV plant in Cambodia
Cambodian Prime Minister Hun Manet proudly shared on social media platform X on July 15, 2024, that he met with BYD Asia Pacific Auto Sales Division CEO Liu Xueliang.
Interestingly, PM Manet claimed that BYD is planning to establish a new electric vehicle production plant in the country.
The proposed EV factory will reportedly hit an annual production capacity of 20,000 units, which can significantly aid BYD’s production ramp-up efforts.
Purpose
The Cambodian Prime Minister disclosed that BYD’s potential domestic factory would not only supply electric vehicles in the local market but also for exports to other countries in Southeast Asia.
“BYD plans to build an electric vehicle assembly plant in Cambodia, with the ability to assemble 20,000 vehicles per year to supply the domestic market and export to international markets.”
Cambodian Prime Minister Hun Manet
BYD apparently expects the planned Cambodian production hub to help it meet the increasing demand in the region.
For context, BYD has already launched its new electric vehicle production base in Thailand. The Thai factory boasts an annual production capacity of 150,000 electric vehicles.
Expected impact
BYD’s potential Cambodian EV factory is expected to deliver major economic benefits through the construction, generate tax revenue, and create job opportunities.
Royal Academy of Cambodia Economic Researcher Hong Vanak asserted that the country has developed a large pool of skilled human resources in the past few years, which can be beneficial to BYD.
“The factories will create jobs in both high and low-skilled technical fields. Therefore, this factory will provide employment to many Cambodians.”
Hong Vanak, Royal Academy of Cambodia Economic Researcher
In return, BYD can further accelerate its electric vehicle production as it seeks to beat Tesla in the global BEV industry.
BYD and the Cambodian government have yet to announce more details about the project, including potential location and official timeline.
In separate news, BYD’s plans to establish a new factory in Vietnam have reportedly hit a snag as the company delayed the project in March. It also canceled its partnership with Vietnamese dealer group NEH in May, potentially hurting BYD’s share in the local market. NEH was apparently expected to contribute around 20% of BYD’s dealer network.
