Subaru Set To End Malaysia And Asian CKD Operations By 2025

The Subaru CKD plant in Thailand established and operated by the Tan Chong Subaru Automotive (Thailand) (TCSAT) venture in 2019.

The era of Subaru models assembled locally (CKD) in Malaysia, as well as the greater Asian region, is coming to an end. This was confirmed by both the automaker and its regional CKD partner Tan Chong International Limited (TCIL) via a filing with the Hong Kong Stock Exchange recently.

“After careful consideration, TCIL and Subaru Corporation have jointly decided to undergo a proactive business transformation by phasing out the existing CKD business model, which is believed to be no longer sustainable in the long term,” says both firms in the filing mentioned.

Stemming from this is the end of local assembly (CKD) efforts by Subaru and TCIL in markets such as Malaysia, Thailand, Vietnam, and Cambodia. All of which will end by next year (2025) before transitioning to a new business model led by complete build up (CBU) models from Japan.

Both Subaru Corporation and CKD partners Tan Chong International Limited (TCIL) acknowledged the difficulties of sustaining the regional CKD business model, hence the switch to a new business model led by CBU models made in Japan next year (2025).

“TCIL and Subaru Corporation are confident that this strategic decision will position Subaru for continued success in these dynamic markets,” elaborates TCIL further in said statement before ending it by expressing confidence in the new direction and stating their commitment to facilitate it.

Locally, this shift sees the Tan Chong Motor Assemblies (TCMA) facility located in Segambut, Kuala Lumpur, ending its role in localising Subaru models. Said facility, also a subsidiary of Tan Chong Motor Holdings (TCMH), churns out CKD versions of the second-gen Subaru XV for both local market and export market sales. It also previously assembled the fourth-gen Forester model.

Additionally, the TCMH-owned facility recently underwent major upgrades and refurbishing to begin CKD production of new products from the GAC Motor brand distributed by Warisan TC Automotif Sdn Bhd (WTCA) – yet another subsidiary from the greater Tan Chong Group.

Beyond Malaysia, the end of Subaru CKD operations also affects the Tan Chong Group’s involvement with the Japanese brand’s Thailand-based CKD efforts. In 2017, the Tan Chong Subaru Automotive (Thailand) (TCSAT) venture established their CKD facility in said Kingdom where it assembles the fifth-gen Forester model. This shift will see said operation’s end by next year too.