New Car Assembly Plant Construction Begins in Cambodia, Boosting Domestic Production Capacity

Construction has commenced on a new car assembly plant by KNN Automotive, a subsidiary of KNN Group, in Sre Ambel District, Kandal Province. The facility is designed to assemble approximately 20,000 vehicles annually, primarily for the domestic market. Chea Vuthy, Secretary General of the Cambodian Investment Board of the Council for the Development of Cambodia (CDC), stated that the company's investment decision reflects confidence in Cambodia's business environment and long-term economic potential. He highlighted that Cambodia is evolving into a new production base for the automotive and supporting industries in the region. The increasing establishment of car assembly plants, tire manufacturing facilities, and auto parts production plants contributes to job creation, technology transfer, human resource development, and strengthens Cambodia's participation in global value chains. KNN Group is a 100% Khmer-owned and managed company. The project, focusing on assembling JETOUR brand vehicles, represents a total investment of $28 million USD and will cover a 10-hectare site. The production line is expected to commence operations in early 2027. The plant will be capable of assembling various types of vehicles, including internal combustion engine (ICE) cars, plug-in hybrid electric vehicles (PHEVs), and pure electric vehicles (EVs). A key feature of the plant will be the implementation of advanced automated guided vehicle (AGV) systems across all production stages, ensuring high efficiency and precision. Furthermore, KNN Group is investing in a 1,335-meter-long international standard test track to rigorously test the quality of every vehicle before it reaches the customer. Neak Okhna Cham Khunnat, Chairman of the Board of Directors of KNN GROUP, emphasized during the groundbreaking ceremony that this automotive assembly plant investment will help reduce reliance on imports, facilitate the transfer of modern technology and technical expertise to future generations of Cambodian youth, and contribute to human resource development by creating skilled personnel and hundreds of job opportunities for Cambodian youth. Currently, Cambodia has 11 companies involved in car assembly and manufacturing, with 8 of them in operation. At the inauguration ceremony for Toyota's assembly and manufacturing line on July 2, 2026, Hem Vanndy, Minister of Industry, Science, Technology, and Innovation, reported that these 11 companies have a total investment of approximately $156 million USD and have created 1,365 jobs. The Minister also noted that a total of 173,473 vehicles have been assembled in Cambodia, valued at approximately $1.1 billion USD.