GAC Group has officially started production at its new knock-down (KD) assembly plant in Cambodia, a joint project with local partner TH Group. The first vehicles rolled off the line on September 20, marking another piece of GAC's Southeast Asia localization puzzle.

The plant runs on a light-asset model: GAC exports complete vehicle kits along with its technical standards and full-chain engineering support, while TH Group foots the bill for the factory and handles final assembly. Planned capacity is around 10,000 units per year — modest by Chinese standards, but a meaningful beachhead for Cambodia's nascent auto industry.

Production will cover several of GAC's mainstream models, including the GS3 Emzoom, Emkoo, the GS8 seven-seater SUV, and the GN8 MPV. Local assembly should shave import costs and shorten delivery times, making GAC's lineup more price-competitive against Japanese brands that have dominated Cambodian showrooms for decades.

Cambodia isn't a huge market, but it's a strategic one — and KD assembly is the classic low-risk entry play. Expect more Chinese brands to follow the same playbook across ASEAN as tariff math keeps tilting toward building locally rather than shipping finished cars.

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