Fuel price does not discourage the demand of motorcycles in Cambodia. Theoretically, the higher the price, the lower the demand. But the demand for motorcycle does not depend on the higher price of fuel because it is an inelastic demand. In the short run, it is not expected that motorcycle consumers will reduce their demand. Until the long run, consumers may have other substitute products or the price of fuel may be lower. However, at this present time, I can see that there is high demand of motorcycle throughout Cambodia.

The demand is higher today, but lower than last three months. The price of motorcycle is lower. The lower price is due to the situation of today; rainy season and pre-election period. After that it is expected the price will be little bit higher, and the demand is higher.

Increasing population means increasing demand. Youths are living in modern society and they need motorcycles to go to school or go to work. Farmers are getting more income from the cash crops. Economic growth make people earn more. Land sales generate big revenue for people, especially those at provinces. People are aware of modern society and want to see it as they never see it many years in their lives.

Moreover, those who have cars may use motorcycles, instead of their cars. Today, you can see people have cars and motorcycles in their houses. Thus, more or less, I can see that motorcycle demand is still high. Higher inflation does not make it drop. Unlike in Vietnam, the demand has dropped 40% due to higher price of food and fuel and credit restriction.