On May 28, 2024, news emerged from Thailand about Tan Chong Subaru Automotive Thailand Company Limited (TCSAT)’s plans to lay off employees and cease car assembly from December 30, 2024. TCSAT is a joint venture between Malaysia’s Tan Chong Group and Japan’s Subaru Corporation.
Just a day later, TC Subaru issued a press statement to the Thai media clarifying the situation. According to the statement, on May 24, 2024, Tan Chong International (TCIL) and Subaru made strategic decisions to promote sustainable growth for TCSAT in the automotive industry.
Both parties agreed on the need for a new approach that looks to the future and adapts to the changing landscape of emerging markets. As a result, starting in 2025, Subaru vehicles sold in Thailand, Vietnam, Malaysia, and Cambodia will no longer be assembled (CKD) in Thailand. Instead, these markets will receive completely built-up (CBU) vehicles imported directly from Japan. This shift will enable faster market introductions and strengthen brand building through new Subaru models.
From 2025 onwards, Subaru vehicles in Vietnam will be imported directly from Japan.
Located in the Lat Krabang Industrial Estate, the TCSAT plant covers an area of 100,000 square meters and has a total investment of nearly THB 5,000 million (approximately USD 135 million). The plant employs nearly 400 people and has a maximum capacity of 100,000 vehicles per year.
However, Subaru’s sales performance in Thailand has been modest. Since entering the Thai market in 2011, Subaru has sold a cumulative total of 28,023 vehicles. In 2019, when the plant began operations, Subaru sold 3,952 units in Thailand. Since then, sales have steadily declined, reaching 1,682 units in 2023.
From the beginning of 2024 until now, Subaru has sold only 344 vehicles in Thailand due to fierce competition from Chinese and other Japanese automakers. The economic downturn since late 2023 and Subaru’s lack of new models in the Thai market have also contributed to the subdued sales performance.
TCSAT is Subaru’s third plant outside of Japan, with the other two located in Indiana, USA, and Segambut, Malaysia. However, the Malaysian plant has also stopped assembling Subaru vehicles and now produces cars for other brands.
The shift to importing completely built-up vehicles from Japan is expected to significantly increase the price of Subaru vehicles in Vietnam. This is due to the higher import taxes, ranging from 50% to 70%, compared to the 0% tax when importing from Thailand.
Subaru does not disclose its sales figures in Vietnam. Currently, four Subaru models are available in the country: the Forester, Outback, WRX, and BRZ. Subaru vehicles in Vietnam are known for their high prices. In the past, Subaru has offered significant discounts and promotions worth hundreds of millions of VND to attract customers.
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