[SMM Analysis] The Foundation - Laying Ceremony of BYD's Cambodia Passenger Vehicle Factory.

On April 28, 2025, BYD held the foundation - laying ceremony for its Cambodia Passenger Vehicle Factory in the Sihanoukville Economic Zone. This marks Cambodia's first new energy vehicle production base.

The factory, covering 12 hectares, involves a total investment of 32 million U.S. dollars. Initially, it will focus on producing pure electric vehicles (EV) and plug - in hybrid electric vehicles (PHEV). Scheduled to start production in the fourth quarter of 2025, it has a planned annual output of 10,000 vehicles.

In recent years, BYD has performed strongly in the global new energy vehicle market. According to public data, in 2024, BYD sold over 410,000 passenger vehicles in overseas markets, a year - on - year increase of 72%. In the first quarter of 2025, sales exceeded 200,000 units, up 110% year - on - year. Currently, BYD's factories in Thailand and Uzbekistan are completed and operational, and its production bases in Brazil and Hungary will also become operational. In April 2025, the TengShiAuto officially entered the European market, reflecting BYD's expanding global presence.

BYD's move to set up a factory in Cambodia is a key step in its global strategy. It will refine BYD's production layout in Asia and globally. This helps the company better meet Southeast Asia's market demands, cut transport costs and tariffs, and boost product competitiveness. Also, local production enables BYD to deeply understand local consumer needs, driving product improvement and innovation and enhancing brand awareness and influence in the local market.

Cambodia's automobile market has been dominated by fuel - powered vehicles, mostly imported and assembled. BYD's factory signals an important shift towards new energy vehicle development. In Q1 2025, BYD's order numbers in Cambodia rose by 521% year - on - year. At the Phnom Penh White House Auto Show on March 1 - 2, BYD accounted for 24% of total orders, ranking highest among all brands. This clearly shows the growing local demand for new energy vehicles.

The Cambodian government considers new energy vehicle development crucial for promoting green, low - carbon economic transformation and economic diversification. Its "Development Policy for the Electric Vehicle Sector (2024 - 2030)" offers support like tax relief and charging network construction, aiming for a national EV stock of 30,000 by 2030. BYD's factory will drive Cambodia's automobile industry upgrading, boost local employment, and promote related industries like parts supply and after - sales services, thus strengthening Cambodia's overall automobile industry competitiveness.

While BYD's factory in Cambodia brings many positive impacts, challenges exist. First, Cambodia's new energy vehicle market is still emerging, with underdeveloped infrastructure, such as limited charging stations. This may affect new energy vehicle promotion and usage. To address this, BYD plans to build 200 EV charging stations across Cambodia and provide technical training for local workers to enhance local human resource quality. Second, the local industry chain is underdeveloped, potentially leading to higher production costs. However, as the factory starts and industrial cluster effects emerge, it is expected to attract more supporting enterprises, reduce costs, and improve industrial competitiveness.

SMM New Energy Industry Research Department

Cong Wang 021-51666838

Xiaodan Yu 021-20707870

Rui Ma 021-51595780

Disheng Feng 021-51666714

Yujun Liu 021-20707895

Yanlin Lü 021-20707875

Zhicheng Zhou 021-51666711

Haohan Zhang 021-51666752

Zihan Wang 021-51666914

Xiaoxuan Ren 021-20707866

Jie Wang 021-51595902

Yang Xu 021-51666760

Boling Chen 021-51666836