Toyota is considering expanding its manufacturing presence in Cambodia to include electric vehicles and hybrid vehicles, potentially marking a new stage in the country’s development as an automotive production hub. The possibility was discussed during a meeting in Phnom Penh on Monday between Mines and Energy Minister Keo Rottanak and Toyota Cambodia President Kensuke Tsuchiya, with discussions focusing on Toyota’s future production and the role of cleaner vehicles in Cambodia’s energy transition.
Toyota already operates an assembly facility in the Royal Group Phnom Penh Special Economic Zone through Toyota Tsusho Manufacturing Cambodia Co., Ltd. The plant began operations in 2024, assembling models including the Fortuner and Hilux. With Cambodia seeking to accelerate electric vehicle adoption and attract more advanced manufacturing, Toyota’s potential expansion could have implications for investment, employment, local supply chains and the country’s broader clean energy ambitions.
“Toyota’s consideration of electric and hybrid vehicle production in Cambodia comes as the country works to build a larger clean mobility ecosystem and attract more automotive investment. The Japanese automaker already has an established manufacturing base in the Kingdom, having invested nearly $100 million and created more than 1,100 local jobs. Cambodia is also seeing steady growth in electric vehicle adoption, with 15,239 electric vehicles registered between 2021 and June 2026. At the policy level, the government has set an ambitious target of 770,000 electric vehicles by 2030. If Toyota expands production into cleaner vehicle technologies, the move could strengthen Cambodia’s position in regional automotive manufacturing while supporting the development of local supply chains and skilled employment.”
Toyota Discusses Future EV and Hybrid Production
The potential expansion was raised during talks between Keo Rottanak and Kensuke Tsuchiya, highlighting the government’s interest in Toyota’s long term contribution to Cambodia’s clean energy transition.
“The discussion focused on the current and future production and use of Toyota vehicles in Cambodia, particularly in the hybrid and electric vehicle sectors,” Rottanak said.
The discussions are significant because Toyota already has an established production operation in Cambodia. Moving toward hybrid and electric vehicle manufacturing would potentially broaden the role of the existing automotive sector while aligning production with changing consumer demand and international efforts to reduce dependence on conventional combustion engines.
Toyota Already Has a Manufacturing Base in Cambodia
Toyota currently operates an assembly plant through Toyota Tsusho Manufacturing Cambodia Co., Ltd. at the Royal Group Phnom Penh Special Economic Zone. The facility began assembling traditional combustion engine vehicles in 2024, including the Fortuner and Hilux.
Since opening, the company has expanded its domestic production capacity and strengthened its connections with local supply chains. An expansion into hybrid and electric vehicles could therefore build on an existing manufacturing foundation rather than starting from scratch.
For Cambodia, this could create opportunities to deepen automotive industrial capabilities and attract supporting businesses involved in components, logistics, maintenance and related services. Greater local production could also help strengthen the country’s position as an investment destination for manufacturers seeking access to Southeast Asian markets.
Cambodia’s EV Market Is Growing
Cambodia registered 15,239 electric vehicles between 2021 and June 2026, according to a report. While the figure represents only part of the country’s overall vehicle market, it demonstrates that demand for electric mobility is developing as more consumers and businesses consider cleaner transportation options.
The government’s discussions with Toyota are taking place against this changing market environment. Promoting hybrid and electric vehicles is increasingly connected to Cambodia’s broader clean energy and sustainable development objectives, while the expansion of charging infrastructure and related services could create additional opportunities for businesses entering the sector.
Toyota Has Become a Major Investment Partner
Toyota has operated in Cambodia for 33 years and has developed a significant presence in the country’s automotive sector. The government views the company as a strategic partner and continues to encourage further investment and expansion.
“Toyota has invested nearly $100 million and provided good jobs for 1,120 people locally. This is a partner that the Royal Government of Cambodia supports and encourages to continue expanding,” Rottanak said.
The scale of Toyota’s existing investment and employment footprint gives the potential EV and hybrid expansion added significance. Any increase in local production could generate further demand for workers with technical and manufacturing skills while creating opportunities for companies that supply goods and services to the automotive industry.
Cambodia Sets an Ambitious EV Target for 2030
Cambodia’s National Policy on the Development of the Electric Vehicle Sector 2024 to 2030 aims to increase the number of electric vehicles in the country to 770,000 by 2030. The target reflects the government’s intention to accelerate the transition toward cleaner transportation over the coming years.
Toyota’s potential involvement in electric and hybrid vehicle production could support this broader policy direction by bringing global automotive manufacturing capabilities closer to Cambodia’s growing domestic market. It could also strengthen confidence among other investors looking at opportunities in electric mobility, automotive components and related infrastructure.
A Potential New Chapter for Cambodia’s Automotive Industry
The possibility of Toyota producing electric and hybrid vehicles in Cambodia comes at an important moment for the country’s automotive sector. Cambodia already has an established manufacturing base, a growing electric vehicle market and a government policy focused on significantly increasing EV adoption by 2030.
For investors and businesses, the potential expansion is worth watching because automotive production can create wider economic activity beyond vehicle assembly. More manufacturing could support suppliers, logistics companies, technical training providers and other businesses connected to the automotive value chain.
The outcome of Toyota’s consideration has not yet been confirmed, but the discussions indicate that cleaner vehicle technologies are becoming an increasingly important part of Cambodia’s industrial and energy agenda. If Toyota ultimately expands into EV and hybrid production, it could represent a meaningful step toward a more diversified automotive industry and a stronger clean mobility ecosystem in the Kingdom.