New cars becoming increasingly popular
Buying new cars in Cambodia, a country dominated by the used car market, is growing more popular as customers understand the advantages of new vehicles.
Figures show that new car sales rose last year and are expected to grow further in 2017.
Ly Bun Hay, general manager of Toyota (Cambodia), said that sales in 2016 increased remarkably both for new and used cars. He did not give figures because the year’s final report had not been completed.
“We have seen, in general, the new car market increased in 2016,” Mr. Bun Hay said.
The rise was caused by economic growth, customers getting a better understanding of the advantages of a new car, and promotion and good service by the company.
According to insiders, the new car market only has a 10 percent share of the country’s automobile sector, dominated by imported used cars in the gray market which offered lower-priced vehicles of dubious origin without any assurance of quality or safety.
But importer RMA (Cambodia) said their sales of new cars rose by about 40 percent in 2016.
Seng Voeung, general manager of the Ford Division at RMA (Cambodia), echoed Mr. Bun Hay’s comments, saying easy access to finance to buy a car is one of two factors behind RMA’s rise in sales.
He expected the increase in sales for last year to be between 30 and 40 percent.
“The second factor is the high-end technology and quality of our products,” he said.
According to Mr. Voeung, about 20 percent of RMA’s sales in 2016 were based on loans. He said RMA had about a 20 percent market share for new cars last year.
Both Mr. Voeung and Mr. Bun Hay said they believed that the new car market would enjoy a healthy increase this year.
Banks and financial institutions are now stepping in to provide loans for cars, which would contribute to boost automobile sales.
Mr. Bun Hay said financial services for car customers will play its part in increasing sales as Toyota (Cambodia) has its own financing service to offer.
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