According to media reports, Subaru plans to end car production in Thailand this December due to continuously declining sales, leaving the United States as Subaru's only overseas production base outside Japan. Previously, Subaru had also ceased production in Malaysia, with that plant now used for producing Nissan and Renault vehicles.
The Tan Chong Subaru Automotive (Thailand) Co., Ltd. (TCSAT) factory is a joint venture between Tan Chong International Limited (TCIL) and Subaru Corporation, located in the Lad Krabang Industrial Estate in Bangkok, Thailand. TCIL holds a 74.9% stake, while Subaru Corporation holds 25.1%.
The TCSAT factory covers an area of 100,000 square meters, with a total investment of nearly 5 billion baht (approximately $135,961,950). It employs 400 people, including both locals and expatriates, with a maximum production capacity of 100,000 vehicles per year. Subaru initially aimed to produce 6,000 vehicles annually.
However, Subaru's sales in Thailand have been gradually declining since a record 3,952 units sold in 2019, with 2024 sales expected to be below 1,000 units. Poor sales performance in the Thai market is one of the main reasons for the plant's closure.
Additionally, it has been reported that the parent company, Tan Chong Motor Holdings Bhd (TCMH), is facing financial difficulties, with losses for four consecutive years. The net loss for the last fiscal year (ending December 31) reached 129 million ringgit.
According to foreign media, TCIL, responsible for Subaru's sales and production in the ASEAN and Chinese markets, has notified the Hong Kong Stock Exchange (HKEX) of its business adjustments, planning to cease vehicle assembly operations at TCSAT by the end of 2024.
The reports indicate that Subaru decided to halt production in Thailand due to the inability to offer products at competitive prices. The locally assembled Subaru Forester models previously sold in Thailand, Malaysia, Vietnam, and Cambodia will no longer be assembled locally but will instead be imported from other countries.
Sureethip La-Ongtong Chomthongdee, General Manager of Subaru's Thailand plant, stated that the decision was made due to changes in the business environment.
She said, "Subaru still has locally assembled cars for sale, and once the local inventory is depleted, Subaru will start importing cars for sale. However, Subaru car owners do not need to worry about after-sales service issues, as this decision will not affect the quality of after-sales service. The company is committed to maintaining high standards in spare parts supply, maintenance and repair, and customer care." Subaru has 21 dealers and 24 service centers in Thailand.
Subaru retails about 70 to 80 cars per month, and the current inventory should meet market demand until the end of the year. However, Sureethip mentioned that the retail price of imported cars might change.
