China’s GAC to Build $19M Auto Assembly Plant in Cambodia
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China’s GAC Group Ltd. signs cooperation agreement with TH Group.
China’s Guangzhou Automobile Group Co. Ltd. (GAC) said it will partner with local distributor TH Group to build an auto assembly plant in Cambodia, stepping up its overseas push as domestic sales falter.
The factory, located in central Kampong Chhnang province, will involve an investment of about $19 million, the Guangzhou-based automaker said Sunday. Construction is expected to be completed by December 2025, with mass production beginning the following month.
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- GAC will invest $19 million with TH Group to build a Cambodian auto assembly plant, with 15,000-vehicle annual capacity, to open in early 2026.
- GAC’s overseas revenue rose 20.6% to $920 million in H1 2025, while domestic sales fell 12.5% to 755,000 units.
- The company is expanding globally with facilities in Southeast Asia, Brazil, Nigeria, Egypt, and is considering European production partnerships.
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Who’s Who
- Guangzhou Automobile Group Co. Ltd.
- Guangzhou Automobile Group Co. Ltd. (GAC) is building an auto assembly plant in Cambodia with TH Group, investing $19 million. This is part of its global expansion, which also includes facilities in Thailand, Malaysia, Indonesia, and plans for Brazil and Egypt. GAC's overseas push comes as its domestic sales falter, with a significant increase in international revenue and sales of its own brands.
- BYD Co. Ltd.
- BYD Co. Ltd. (比亚迪股份有限公司) is constructing a completely knock-down assembly plant in Cambodia. This plant will have an annual production capacity of 10,000 vehicles and is expected to commence production in late 2025. This initiative highlights the trend of Chinese automakers localizing production in Southeast Asia due to tariffs and trade barriers.
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What Happened When
- 2019：
- GAC and TH Group first teamed up for vehicle distribution.
- 2023：
- EV penetration in six major Southeast Asian markets was 9%.
- 2024：
- EV penetration in six major Southeast Asian markets reached 13%.
- First half of 2025：
- GAC's sales fell 12.5% to 755,000 units and revenue fell nearly 8% to 42.2 billion yuan; overseas revenue rose 20.6% to 6.7 billion yuan and GAC’s overseas sales topped 50,000 units, up 45.8% YoY.
- March 2025：
- GAC Chairman Feng Xingya stated the company was considering partnerships in Europe, with Magna’s Austrian plant reported as a candidate.
- May 2025：
- GAC announced plans for local production and an R&D center in Brazil.
- August 2025：
- Cambodia’s Council for the Development granted TH Group a production license.
- September 21, 2025：
- GAC announced partnership with TH Group to build an auto assembly plant in Cambodia.
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