Sales of Toyota vehicles, among the most popular in Cambodia, have plummeted almost 50 percent since May, national media reported Thursday, citing Kong Nuon, president of Cambodia's only Toyota distributor TTHK Co Ltd.
"The real estate recession is the main cause for the sales decline because people are not earning extra cash from land sales," he was quoted by the Phnom Penh Post as saying.
"Demand for cars has declined a lot," he added.
He said Toyota had hoped to sell about 2,000 cars this year, but has achieved sales of only 1,200 so far.
He said he expected next year's sales to decline by another 20 to 30 percent.
Despite the slump, the company expects to be able to withstand the tough economic climate, he said.
"We don't plan to lay off our staff, but we will cut expenses by about 10 percent," Kong Nuon said.
Meanwhile, Ngorn Saing, deputy general manager of RM Asia Co Ltd, the second largest automobile importer, told the Post that sales of Ford brand cars have declined about 10 percent within the last few months.
Ngorn Saing said the company expected to sell 500 Ford cars in 2008, but has cut its forecast to 450.
Chan Sophal, president of the Cambodia Economic Association, said the decline in automobile sales is mainly due to the slow real estate market.
"In the past, the auto demand has been high because people had money from selling their land and from speculation, but now the land market is in crisis," he said.
Source: Xinhua
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