News broke out recently that local assembly (CKD) operations of Subaru vehicles in the Southeast Asian region, including Malaysia, will come to a complete halt soon, according to a filing to the Hong Kong Stock Exchange on May 24, 2024. This information has been further confirmed as Subaru’s official distributor in Malaysia, TC Subaru, has put out an official statement addressing the matter.
Starting in 2025, all new Subaru vehicles sold in Malaysia will be fully imported (CBU) from Japan. This change also mirrors the announcement made by Tan Chong International Limited (TCIL) on May 24.
The company said in a release, “Together, TCIL and Subaru Corporation recognise the need for a forward-looking, future-proof approach to adapt to emerging market dynamics. After careful consideration, TCIL and Subaru Corporation have jointly decided to undergo a proactive business transformation by phasing out the existing Complete Knock Down (CKD) business model, which is believed to be no longer sustainable in the long term.”
“TCIL and Subaru Corporation are confident that this strategic decision will position Subaru for continued success in these dynamic markets. As TCIL embarks on this new chapter together with Subaru Corporation, both TCIL and Subaru Corporation remain steadfast in their commitment to delivering exceptional value to customers, partners, and stakeholders,” the company added.
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Addressing current owners of Subaru vehicles in Malaysia, TC Subaru reaffirms that it will continue to offer comprehensive support and services, including genuine parts found at all authorised service centres nationwide.
For context, TCIL is the parent company of Motor Image Group, the exclusive regional distributor for Subaru vehicles in the majority of Asian markets. In 2017, TCIL together with Subaru Corporation formed the Tan Chong Subaru Automotive Thailand (TCSAT) joint venture to locally assemble Subaru vehicles in Thailand.
The facility in Thailand is the first dedicated Subaru manufacturing plant outside of Japan in Asia. It is also the third plant to fully produce Subaru vehicles worldwide. Having begun operations in 2018, the facility in Thailand currently manufactures the fifth-generation Subaru Forester for markets including Thailand, Malaysia, Vietnam, and Cambodia.
In Malaysia, CKD operations for Subaru vehicles began in 2012 at the Tan Chong Motor Assemblies Plant. Currently, Subaru cars assembled in the Segambut facility are also exported to other markets in the region. Despite the ceasing of its CKD operations in the region, Subaru reaffirms its commitment to the Southeast Asian market.
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