Subaru ends CKD operations in Malaysia and other Southeast Asian markets next year – switching to importing complete units from Japan

In a profile with Hong Kong Stock ExchangeTan Chong International Limited (TCIL) and Subaru Corporation have just announced they will completely end dismantling (CKD) operations in Southeast Asia.

“After careful consideration, TCIL and Subaru Corporation have jointly decided to undertake a proactive business transformation by phasing out the current CKD business model, which is considered no longer sustainable in the long term,” the business update said.

“From next year, CKD markets in Thailand, Vietnam, Malaysia and Cambodia will switch to a fully built-up (CBU) sales model from Japan,” it continued. Despite this move, both parties will continue to jointly explore additional viable business avenues in these markets.

From the Malaysian context, Tan Chong Motor Assemblies (TCMA) – a subsidiary of Tan Chong Motor Holdings (TCMH) – in Segambut produces the second generation XV for the domestic and export markets. Previously, the company also assembled the fourth generation Forester, although assembly of the fifth generation model was moved to Thailand. TCIL and Subaru Corporation establish joint venture – Tan Chong Subaru Cars (Thailand)or TCSAT – in February 2017 to assemble Subaru vehicles in Thailand.

“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 with Subaru Corporation, both TCIL and Subaru Corporation remain steadfast in their commitment to delivering exceptional value to customers, partners and stakeholders,” the statement concluded.

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