Cambodia Launches Its First Toyota Assembly Plant
Cambodia has launched its first Toyota assembly plant with an investment capital of nearly USD $37 million in the Phnom Penh Special Economic Zone (PPSEZ). The plant will assemble the Toyota Hilux and Toyota FORTUNER vehicles.
The investment project is based on the Memorandum of Understanding (MOU) on 'Cooperation for the Development of the Automobile Industry' signed between the Government of Cambodia and Toyota Tsusho in November 2022.
The official launch event, held on May 2, 2024, was attended by Prime Minister Hun Manet, the Japanese Ambassador to Cambodia, H.E. UENO Atsushi, and renowned Cambodian Oknhas.
The investment amount for this project is USD $36.8 million, with Toyota Tsusho holding 90 per cent of shares, and local partner Kong Nuon Group holding 10 per cent.
The 43,000 square-metre factory, operated by Toyota Tsusho Manufacturing (Cambodia) Co., Ltd. (TTMC) is located in the Royal Group PPSEZ and will employ 150 people.
Strengthening Japanese Investment In Cambodia
During the launch event, the Prime Minister extended his congratulations on the establishment of the Toyota assembly plant, emphasising that it represents a new achievement for Cambodia and reflects the trust of Japanese investors in the Kingdom's investment environment.
"The Toyota assembly plant is not only a testament to Cambodia’s industrial development, but also a positive sign for the country's economic diversification," he said.
This new factory has the capacity to assemble 1,320 vehicles of two models – the Toyota Hilux Pickup (1,030 cars) and the Toyota Fortuner SUV (290 cars) – in 2024.
The President and CEO of Toyota Tsusho, Ichiro Kashitani, said the start of assembly production marks a new milestone in Toyota Tsusho's more than 30-year history in Cambodia.
"Toyota Tsusho will continue to promote its business in Cambodia, aiming to contribute to the happiness of the Cambodian people by realising carbon neutrality and human resource development," he said.
He further added: "Cambodia's automobile market is expected to continue to expand steadily in line with the country's economic growth,
"Through the promotion of the vehicle assembly production business, the Toyota Tsusho Group will be more deeply involved in the mobility value chain, job creation, and human resource development in Cambodia, contributing to the country's economy and social development.”
Car Assembly Plants in Cambodia As Of 2024
According to various media reports, as of May 2024, Cambodia currently houses seven operational car assembly plants, including:
- Daehan Auto manufacturing Ssangyong, Daehan, Sino, etc. (located in Bavet City, Svay Rieng)
- RMA Automotive making Ford (located in Pursat)
- Camko Motor producing Hyundai (located in Koh Kong)
- HGB Motors Assembly manufacturing Kia (located in Poipet City, Banteay Meanchey)
- GTV Motor produces local brand cars GTV (located in Kandal)
- K (CAMBODIA) producing ISUZU (located in Kampong Speu)
- Toyota Tsusho Manufacturing (Cambodia) making Fortuner and Hilux (located in Phnom Penh)
Additionally, there are also other assembly plants such as EM AUTOMOBILE, focused on heavy truck production (located in Koh Kong), and XCMG (Xu Gong) Cambodia, engaged in the manufacturing of road machinery (located in Phnom Penh).
Prime Minister Hun Manet, speaking at the Toyota assembly plant launch, affirmed that Cambodia has a vision of becoming a hub for the production of auto parts and electronic components for regional and global markets in the future.
Toyota Tsusho Group entered Cambodia in 1993 as an after-sales service company providing automobile repair and maintenance. Over 30 years, the Group has developed and expanded its business centred on the mobility industry, including automobile import distributors, automobile sales finance, and support for the entry of parts manufacturers (the Techno Park business).