How will the lack of Subaru vehicles from Thailand affect prices here in Malaysia?
Subaru has decided to close its vehicle manufacturing plant in Thailand was driven by a combination of rising demand for hybrid vehicles and increasing competition. Monday marked the final day of operations for Subaru’s plant in Bangkok’s Lat Krabang industrial estate.
The Federation of Thai Industries (FTI) considered this move a strategic cost-cutting measure in response to changing market conditions. Earlier this year, TC Subaru (Thailand) confirmed that it would shift to importing all Subaru vehicles, following a joint decision between Tan Chong International (TCIL) and Subaru Corporation to cease local assembly by the end of 2024.
Moreover, the company had launched the 100,000-square-meter plant on 23 April 2019, as part of its strategy to produce vehicles locally. However, Subaru is not the only Japanese automaker to pull out of Thailand. Suzuki Motor (Thailand) has also announced plans to end its vehicle production by the end of 2025, signaling a broader trend among automakers in the region.
Surapong Paisitpattanapong, the president of FTI’s Auto Club, explained that these shifts were driven by evolving consumer preferences, particularly the growing demand for hybrid vehicles over traditional internal combustion engine (ICE) cars. Manufacturers are increasingly rethinking their production strategies to align with these new preferences.
Surapong also pointed out the rising competition from Chinese brands, which are aggressively targeting the Thai market and intensifying the pressure on established players. The decision to import fully assembled Subaru vehicles, rather than continuing local production, is seen as a move to reduce costs.
On top of that, Surapong noted that the relatively low production volumes in Thailand made local manufacturing economically unfeasible. By importing vehicles that are already built, Subaru can cut down on operational expenses, especially in a market where demand for their cars no longer justifies maintaining a large-scale production facility.
Looking ahead, Surapong anticipated that Subaru would focus on importing vehicles equipped with advanced technologies. This strategy would cater to the increasingly tech-savvy Thai consumers who are demanding more sophisticated features in their cars. By prioritizing these advanced models, Subaru aims to remain competitive in a rapidly changing automotive market.
We got all this from The Nation and their full article is linked here. Thank you The Nation for the information and images.
