GTV Motor Co., Ltd., a Cambodia-based car manufacturing company, is nearing completion of its new car assembly plant in Kandal. The 100,000 square meter facility, located along National Road 2 in Kandal Steung District, will have an annual production capacity of up to 35,000 units. The company plans to inaugurate the factory and commence production in early 2024.
The construction of the $15.6 million assembly plant was approved by the Council for the Development of Cambodia (CDC) in June 2022, with the aim of creating 738 new jobs. Recognizing the growing demand for new cars in Cambodia, GTV Motor intends to target the local market instead of focusing on export quotas. By driving down local new-car prices and meeting local quality demands, the company aims to cater to the diverse tastes and budgets of Cambodian consumers.
As the designated car assembly and export facility for Volkswagen in Southeast Asia, GTV Motor has positioned itself under its own locally owned brand. The initial production at the plant will focus on five affordable car models, aligning with the company’s goal of developing Cambodian-owned branded vehicles.
In addition to the assembly plant, GTV Motor has established the GTV Automotive Electronics Research Institute (GTV AERI) in Cambodia to promote the development of the automotive industry. Through collaboration with the National Polytechnic Institute of Cambodia and international offices in Germany, China, Japan, and Singapore, GTV AERI provides advanced vocational training for the automotive sector. This initiative aims to enhance the competitiveness and influence of Cambodian automobile brands, contributing to the sustainable growth of the country’s manufacturing industry.
The demand for new cars in Cambodia has been steadily increasing over the last decade, as demonstrated by rising vehicle registration numbers. It is projected that new vehicle registrations will reach 50,000 in 2024, a significant increase from 7,000 registrations in 2016. The establishment of GTV Motor’s assembly plant further supports this trend and contributes to the development of Cambodia’s automotive industry.
GTV Motor joins other prominent brands such as Dongfeng, Ford, Hyundai, Isuzu, Kia, Ssangyong, Soueast, Daehan, and Toyota, which have car assembly and production facilities in Cambodia. With numerous CDC-approved projects in the pipeline, the auto-manufacturing sector in the country is expected to expand further.
The completion of GTV Motor’s car assembly plant signifies a significant milestone for Cambodia’s automotive industry. As the company focuses on producing locally branded vehicles and supporting the government’s roadmap for industry development, Cambodia is well-positioned to elevate its manufacturing sector to new heights. In the future, independent Cambodian automobile brands are expected to play a leading role in the industry, fostering the overall growth of the country’s manufacturing industry and industrial chain.
Source: Khmer Times
