Subaru Compact SUV To Start Local Assembly In Malaysia

11 July 2011 - Fuji Heavy Industries Ltd, the company that manufactures Subaru vehicles, has inked a memorandum of understanding with Motor Image, the official Subaru distributor wholly owned by the Tan Chong Group, to make Malaysia the manufacturing hub for the ASEAN region.

The agreement leverages on Tan Chong’s existing assembly facilities for the production of Subaru compact SUVs for marketing and distribution in Malaysia, Thailand and Indonesia. Under the MOU, production will begin in October 2012 with a capacity of 5,000 units a year. A key part of Subaru presence in the region is local distributor Motor Image, a wholly owned subsidiary of Tan Chong. This new development is part of Motor Image Group’s growth strategy which identifies ASEAN as a key engine of the company’s future growth.

The all-new Subaru compact SUV will be launched and marketed in Malaysia, Thailand and Indonesia. To support the expected increase in sales through 2013, Motor Image aims to establish 18 more sales and distribution outlets in Malaysia (now two), 22 more in Thailand (now one), and 20 more in Indonesia (now three).

Subaru enjoyed sales of over 2.300 vehicles in the region in 2010,  and Motor Image expects to increase revenues by over tenfold within the first year of introducing the XV concept model in the three markets under this MOU.

Over the next two years, the Group aims to expand its sales network by 10 times adding 60 new outlets in Malaysia, Indonesia and Thailand. Currently, the company has a network of 76 sales and distribution outlets across 10 markets. Glenn Tan, Executive Director of TCIL and Group Chief Executive of Motor Image Group says, “We believe that this development will enhance our growth in the ASEAN region.