Subaru Reveals End Of Locally Assembled Production In Malaysia

Subaru cars will no longer be assembled in Malaysia. In accordance with a filing to the Hong Kong Stock Exchange on May 24, 2024, it was revealed that local assembly (CKD) operations of Subaru automobiles in the Southeast Asian region, including Malaysia, will shortly come to an end. Since TC Subaru, Subaru’s official distributor in Malaysia, released an official statement addressing the issue, this information has been further corroborated.

All new Subaru cars offered for sale in Malaysia will be fully imported (CBU) from Japan as of 2025. This modification also aligns with the May 24 notification from Tan Chong International Limited (TCIL).

In a press release, the firm stated, “TCIL and Subaru Corporation acknowledge the necessity of a forward-thinking, future-proof approach to adjust to evolving market circumstances. Due to the fact that the current Complete Knock Down (CKD) business model is thought to be unsustainable in the long run, TCIL and Subaru Corporation have mutually chosen to implement a proactive business transformation.”

“TCIL and Subaru Corporation are optimistic that by making this strategic choice, Subaru will be well-positioned to maintain its success in these rapidly evolving markets. The company also stated, “TCIL and Subaru Corporation are unwavering in their commitment to delivering excellent value to customers, partners, and stakeholders as we begin this new chapter together.”

But Subaru owners in Malaysia need not worry. TC Subaru says it is committed to providing full support and services, including authentic components available at all approved service locations across the country.

To put things in perspective, Motor Image Group, the official regional distributor of Subaru automobiles in most Asian markets, is also owned by TCIL. In order to assemble Subaru automobiles domestically in Thailand, TCIL and Subaru Corporation established Tan Chong Subaru Automotive Thailand (TCSAT) as a joint venture in 2017.

The first dedicated Subaru manufacturing site outside of Japan is located in Thailand. Additionally, it is the third facility in the world to make Subaru cars in their whole. The Thailand plant started producing the fifth-generation Subaru Forester in 2018 and is now serving markets in Malaysia, Vietnam, Cambodia, and Thailand.

2012 saw the start of Subaru vehicle CKD operations in Malaysia at the Tan Chong Motor Assemblies Plant. At the moment, Subaru vehicles built at the Segambut plant are shipped to additional markets in the area. Subaru reiterates its dedication to the Southeast Asian market despite ending its CKD operations in the area.

CARLIST THOUGHTS

Subaru owners should not be concerned about this development as cars made in Japan are some of the best manufactured in the world. And you can be assured that the after-sales and parts divisions will not suffer because of the latest announcement.

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