Dealers oppose Toyota monopoly

via CAAI News Media

Friday, 29 January 2010 15:01 May Titthara

TEN Phnom Penh firms plan to write to Prime Minister Hun Sen asking for the right to import Toyotas into Cambodia, challenging the monopoly given to TTHK Co Ltd.

In March, TTHK was granted exclusive rights by the Ministry of Commerce to import new Toyotas into the Kingdom. TTHK can then sell vehicles on to smaller dealers.

Other dealers say they want to have a say in what vehicles they sell and are asking Hun Sen to grant them the right to import Toyotas from abroad.

Keo Vong Nary of Monivong 278 Car Sales, who represents the traders, said Thursday: “We plan to file a complaint to ask for intervention from Prime Minister Hun Sen to help us get the right to import the Toyota brand from the US, Germany, China, Taiwan and other countries.

“We do not want to import from Japan.”

He added that the traders hadn’t received any “new and modern” cars considered suitable by them for sale this year.

Kong Nuon, country director of TTHK Co Ltd, said the exclusivity agreement with Toyota was drawn up to ensure quality control of the vehicles.

“The reason we do not allow them to import the vehicles is because of government laws, set by the Ministry of Commerce,” he said. “Also, Toyota wants to ensure quality by controlling its products from its headquarters in Tokyo.

“Before they exported their products to Cambodia, they carried out surveys on our roads and petrol quality to understand what cars were suitable for the market.”

Secretary of State for the Ministry of Commerce Var Cheang confirmed the agreement was in place because it was Toyota’s right to do so.

“The reason our ministry gave exclusive rights to TTHK is because Toyota in Japan had provided the exclusive rights to TTHK,” he said.