GAC Group began production at its knock-down vehicle assembly plant in Cambodia's Kampong Chhnang province on September 17, marking the automaker's shift in the country from exporting complete vehicles to local manufacturing.Image source: GAC GroupKey Takeaways·THG is responsible for investing in and constructing the plant and for assembling vehicles, while GAC supplies vehicle kits, technical standards and technical support. ·The project is designed for annual production capacity of around 10,000 vehicles. ·Planned models include the GS3, EMKOO, GS8 and GN8. ·GAC plans to expand its Cambodian retail network in 2026, covering Phnom Penh, Siem Reap, Battambang and other major cities.Image source: GAC GroupWhy It MattersGAC expects local assembly to reduce product costs, support local employment and introduce automotive manufacturing and operational expertise to Cambodia. The project also gives the automaker a local production base alongside its existing sales network.BackgroundGAC said it has spent seven years developing its presence in Cambodia, beginning with sales channels and vehicle introductions before moving into local assembly. The new plant represents the manufacturing stage of that expansion.Data and EvidenceAccording to GAC Group, its GAC Trumpchi brand recorded a compound annual growth rate of more than 300% in Cambodia over the past three years and ranked first among Chinese automotive brands in the country in 2025. The source does not specify the underlying sales volume or the methodology used for the ranking.What to Watch NextGAC Deputy General Manager Jiang Xiuyun said the company's next priorities are to apply its global quality and production standards at the plant, strengthen technical training and on-site process support, and expand its combustion-engine and new energy vehicle offerings. GAC also plans to enlarge its showroom and after-sales network, deepen cooperation with THG and increase its participation in Cambodia's local supply chain.