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GAC and TH Group Sign Cooperation Agreement on Cambodia KD Plant to Jointly Promote Localized Development

2025-09-20

On September 19, 2025, GAC INTERNATIONAL and its Cambodian partner TH Group officially signed a cooperation agreement on the KD Plant and held a press conference simultaneously. This marks a new stage in GAC's development in Cambodia and represents a key initiative for GAC to advance the global ONE GAC 2.0 strategy and deepen the "One Localization" effort.

 

Distinguished guests including H.E. Chea Vuthy, Secretary General of the Cambodian Investment Board of the Council for the Development of Cambodia, Zhong Jie, Minister Counsellor of the Embassy of the People's Republic of China in the Kingdom of Cambodia, Yu Jun, Vice President of GAC Group, Norm Tong, Chairman of TH Group, SVP of GAC INTERNATIONAL and President of Asia-Pacific and Middle East & Africa Regional Centers Mr. Wang Shunsheng, and Norm Hav, General Manager of TH Group, attended the event.

Group Photo at the Signing Ceremony

 

KD Plant: Embarking on a New Journey of Localized Production and Market Layout

H.E. Chea Vuthy, Secretary General of Cambodian Investment Board of the Council for the Development of Cambodia, stated that GAC’s decision to entrust its complete vehicle KD assembly business to TH Group, its Cambodian partner, represents a significant vote of confidence in the future development of Cambodia’s automotive industry. The CDC has already issued an assembly and production license to TH Automotive Manufacturing Co., Ltd. in late August, marking the official launch of the cooperative project between the two parties. This project will not only create high-quality local job opportunities and facilitate the transfer of advanced technologies, but also significantly enhance Cambodia’s automotive industry chain and industrial capabilities, thereby contributing to sustainable economic growth. H.E. Chea Vuthy pointed out that the automotive industry is one of the key sectors supported by the CDC. In the future, the CDC will encourage the project to expand into auto parts manufacturing and export business. Leveraging Cambodia’s geographical advantages within ASEAN and the benefits of the RCEP Free Trade Agreement, the project is expected to tap into broader regional markets. The Cambodian government will also continue to provide policy guarantees for enterprises through the Government-Private Sector Forum (G-PSF) and bilateral dialogues, and fully support the success of the cooperative project between GAC and TH Group, so as to assist Cambodia in building itself into a regional hub for high-value-added manufacturing.

H.E. Chea Vuthy Delivers a Speech at the Signing Ceremony

 

Zhong Jie, Minister Counsellor of the Embassy of the People's Republic of China in the Kingdom of Cambodia, stated that GAC's establishment of an automobile assembly plant in Cambodia is another important achievement of China-Cambodia practical cooperation, and its impact goes far beyond the completion of a single factory, and the Embassy will fully support the implementation and development of this project.The assembly and production of GAC automobiles in Cambodia will create numerous employment opportunities, improve the skills of local technical personnel, introduce advanced technologies and management experience, promote the upgrading of Cambodia's automobile industry chain, and make positive contributions to the joint construction of the China-Cambodia "Industrial Development Corridor".

Zhong Jie Delivers a Speech at the Signing Ceremony

 

Yu Jun, Vice President of GAC Group, mentioned that since GAC established cooperation with TH Group in 2019, it has introduced a number of vehicle models to Cambodia, which have been well recognized by local consumers. This time, the two parties are joining hands to advance the implementation of the KD Plant project. Through localized assembly, they will better meet market demands and provide users with high-quality mobility experiences featuring higher cost-effectiveness and faster response speed. Yu Jun stated that GAC will work closely with the Cambodian government and partners to build a demonstration project for sustainable development and promote the improvement of local manufacturing capabilities. He also expressed special gratitude to the Embassy of the People's Republic of China in Cambodia for its long-term support.

Yu Jun Delivers a Speech at the Signing Ceremony

 

Norm Hav, General Manager of TH Group, stated that at the end of August, TH Automotive Manufacturing officially obtained the QIP License. Today is not only an important moment to witness this achievement, but also a historic step forward as we sign the assembly cooperation agreement with GAC International and jointly promote localized manufacturing in Cambodia. TH Group will invest in building a modern plant in Kampong Speu with an annual production capacity of up to 15,000 vehicles, creating hundreds of jobs. This is not merely an investment in a factory, but also an investment in the future of Cambodia’s industry and local talent. He expressed his hope that through close cooperation with GAC, world-class quality and technology can be brought to Cambodian consumers, contributing to the development of the local automotive industry.

 

Norm Hav Delivers a Speech at the Signing Ceremony

 

GAC's Business in Cambodia Grows Steadily with Broad Prospects

In recent years, GAC has maintained rapid growth in the Cambodian market. With the successful introduction of multiple models and the continuous improvement of its sales network, the company’s sales are expected to exceed 2,000 units in 2025, making it likely to become the leading Chinese automobile brand in the local market.

GAC and TH Group Officially Sign the Cooperation Agreement on the KD Plant

 

Rooted in the Local Market, Practicing the ONE GAC 2.0 Strategy

GAC INTERNATIONAL is fully advancing the ONE GAC 2.0 strategy, with the core of "one vision, one goal, one image, and one localized initiative", and is committed to creating a new pattern for the global market. The launch of the Cambodia KD Plant is a practical action to promote the concept of "One Localization". This plant will not only help GAC deepen its presence in the Southeast Asian market and enhance product competitiveness, but also become a new driving force for promoting the development of the local manufacturing industry and setting a model for sustainable development overseas.

 

In the future, GAC INTERNATIONAL will continue to uphold the concept of "user-centric", join hands with partners and the government to promote more localized projects, continuously enhance the brand's global influence, and create a better mobility experience for global users.

Cambodia KD Plant

 

*The Cambodia KD Plant is located in Kampong Chhnang Province in central Cambodia, approximately 70 km away from Phnom Penh. It is a new plant jointly built by GAC and TH Group. Constructed in strict accordance with GAC's standards, the plant has a total investment of approximately USD 19 million. The plant plans to set up 4 assembly lines with an annual production capacity of 15,000 units. It is expected to be completed in December 2025 and officially start mass production in January 2026.Through localized production, GAC will provide Cambodian users with high-quality products with higher cost performance, while helping the development of the local manufacturing industry, driving employment and the improvement of technical capabilities, and injecting new vitality into the upgrading of Cambodia's automobile industry chain.