Fuji Heavy Industries Ltd. (FHI), the manufacturer of Subaru vehicles has announced plans to form a joint venture in February with TC Manufacturing and Assembly (Thailand) Co., Ltd. (TCMA TH), a subsidiary of Tan Chong International Limited, to start production of Subaru vehicles in Thailand.
Currently, Subaru vehicle production in Southeast Asia is conducted at a CKD (completely knocked down) assembly plant of the Tan Chong Motor Assemblies Sdn. Bhd. in Segambut, Malaysia, which builds the Subaru XV and the Forester. The company however, didn’t mention what models that they will be producing in Thailand.
With a view to enhancing Subaru’s competitiveness and further growth in Southeast Asia, FHI has decided to start production in Bangkok, Thailand by a new and soon to be established joint venture company, Tan Chong Subaru Automotive (Thailand) Co., Ltd., 74.9% of which will be owned by TCMA TH and 25.1% by FHI. The new joint venture aims to begin production in 2019.
Production in Malaysia will continue, and Tan Chong International will sell the vehicles produced both in Malaysia and Thailand through its Subaru dealer network.
In its mid-term management vision “Prominence 2020” announced on May 9, 2014, FHI laid out initiatives to develop a strong business foundation in Southeast Asia as part of its efforts to build a strong business structure. With this new joint venture project, the company aims to further enhance Subaru sales in the Southeast Asian market, offering the brand’s distinctive “Enjoyment and Peace of Mind” driving experience to customers in the region.
