Motor Image showrooms in Malaysia are now selling Chery, GAC and JAECOO vehicles
Did you know that Singapore based Tan Chong International (not the Malaysian Edaran Tan Chong Motor), which owns the Subaru distributor Motor Image is seeing a free fall drop in sales and also income?
Falling car sales across nearly all their markets in ASEAN (Thailand, Taiwan, Singapore and the Philippines) including Malaysia, has seen their profits in the first half of 2024 drop by a huge 86.6 percent. Total profit from operations in H1 2024 dropped to HK$250 million, from HK$432 million in the year-ago period.
Meanwhile the Subaru (TSE:7270) full year 2024 results looks like this:
- Revenue: JP¥4.70t (up 25% from FY 2023).
- Net income: JP¥385.1b (up 92% from FY 2023).
- Profit margin: 8.2% (up from 5.3% in FY 2023). The increase in margin was driven by higher revenue.
- EPS: JP¥509 (up from JP¥261 in FY 2023)
Additionally, as we reported in June this year, the arrival of stylish, shiny, technology loaded Chinese automotive brands at lower selling prices has hit some traditional auto brands and it is Subaru that has been hit the hardest in 2024. In May 2024, Hong Kong Stock Exchange stated that Tan Chong International Limited (TCIL) and Subaru Corporation will phase out the assembly of all Subaru vehicles in South East Asia.
All Subaru vehicles will come from its Japanese factories with immediate effect. This means CKD operation are no longer financial viable as Subaru sales across the region slows down (which we predicted and wrote about months ago).
So, right now in Malaysia there are huge discounts being offered on the two popular Subaru models which is the Forester and XV.
There are now four variants instead of three variants of the 2023 Forester, and they now all carry EyeSights ADAS as standard, though pre-collision braking with autonomous emergency steering and rear vehicle detection are relegated to the higher grades. Steering-responsive headlamps and High Beam Assist are also new on the Forester.
2023 Subaru Forester 2.0i-S GT Edition Specifications
Engine: Boxer 4, 16-Valve, DOHC, Petrol
Capacity: 1995cc
Gearbox: Lineartronic CVT
Max power: 154hp @ 6000rpm
Max torque: 196Nm @ 4000rpm
Top Speed: 193km/h
0-100 km/h: 10.3 seconds
Original 2023 Selling Price: RM196,288 NOW Selling Price: RM142,500
