GAC has commenced vehicle production at its knocked-down (KD) plant in Kampong Chhnang Province, Cambodia, following its transition from vehicle exports to local assembly and manufacturing in the country.

The TH Automotive Manufacturing Co Ltd plant was inaugurated by Cambodian Prime Minister Hun Manet on September 17th, with the GAC vehicle assembly line also launched at the event. The project was initiated in 2024 under a partnership between GAC and TH Automotive Manufacturing (THG).

THG is responsible for investment in the plant, its construction and vehicle assembly, while GAC supplies vehicle kits, technical standards and technical support across the production process. The plant has a fixed-asset investment of US$ 20 million and imports completely disassembled vehicle parts and components in kits from China, which are then assembled into finished vehicles in Cambodia.

The facility is planned to have an annual production capacity of 10,000 vehicles and will assemble GAC Trumpchi models, including the Empow, Emkoo, GS8 and GN8. The factory also plans to assemble Chevrolet vehicles from the US in the future.

Speaking at the inauguration, Prime Minister Hun Manet said that the establishment of local vehicle assembly operations was creating opportunities for investment, industrial diversification, job creation and technology transfer. He said Cambodia's automotive industry was moving from reliance on imported vehicles towards local assembly facilities intended to meet domestic demand and support exports.

According to Hun Manet, domestic vehicle assembly can reduce Cambodia's reliance on imported finished vehicles while supporting the country's move towards higher-value manufacturing, including electronics and automotive production, and its participation in regional supply chains.

"This reflects Cambodia's efforts to strengthen its manufacturing base and reduce dependence on fully built-up vehicle imports," the Prime Minister said.

Cambodia currently has 15 vehicle assembly and manufacturing plants, of which 10 are operational, two are nearing production and three are under construction. Together, the facilities have the capacity to produce around 35,000 vehicles annually. Total investment in the automotive industry has reached about US$ 248 million, comprising 28% domestic investment and 72% foreign investment, while the sector has created 2,774 skilled jobs.

The 10 operational plants are run by BYD, Camko Motor Hyundai, CXD Industry, Daehan Auto (Cambodia), GTV Motor, Hgb Motors Assembly, K (Cambodia), RMA Automotive (Cambodia), TH Automotive Manufacturing and Toyota Tsusho Manufacturing Cambodia.

Hun Manet said Cambodia has the potential to become a regional production and export base for assembled vehicles and automotive components. He said the country could supply automotive components to regional markets rather than necessarily exporting complete vehicles.

"This is one of our major goals. We do not necessarily need to export entire vehicles to supply the regional market, but auto components for distribution to the region," he said.

The Prime Minister also said that a Japanese company had recently selected Cambodia as a production base after considering several countries, including the Philippines. The company plans to manufacture components in Cambodia for distribution across the region.

He instructed the relevant ministries and institutions to facilitate such investments and explore additional incentives, particularly for projects using Cambodia as a manufacturing base to serve regional markets.

GAC entered the Cambodian market in 2019, and its vehicles have gained support among local consumers. Jiang Xiuyun, Deputy General Manager of GAC Group, said Cambodia's policy environment had created conditions for the company to establish domestic production.

"Based on Cambodia's favourable policy environment, domestic production will help increase product cost efficiency, benefit Cambodian customers, create jobs, transfer experience in managing luxury car production, and inject new impetus into the development of the automotive industry in Cambodia," Jiang said.

The GAC Trumpchi brand has recorded growth in Cambodia since 2024, with a three-year compound annual growth rate of more than 300%. It ranked No. 1 among Chinese automotive brands in the Cambodian market in 2025.

Alongside local production, GAC has been expanding its offline sales network in Cambodia. The company plans to achieve coverage across key cities, including Phnom Penh, Siem Reap and Battambang, in 2026.

The shift to local assembly is expected to optimise product costs, create employment and transfer automotive manufacturing and management experience to Cambodia. It also forms part of an expansion of knock-down vehicle production in the country, with BYD, Hyundai, Ford and Toyota Tsusho Manufacturing Cambodia among the companies expanding their presence through Completely Knocked-Down (CKD) facilities.

In these facilities, disassembled vehicle components are imported and assembled locally into finished vehicles. The development of such plants represents a shift from vehicle imports towards local manufacturing and higher-value industrial activity. Continued investment and supportive policies are expected to affect the automotive sector's contribution to economic growth and manufacturing activity in Southeast Asia.