Tan Chong sees growth with Subaru assembly

SINGAPORE: Tan Chong Group, through its wholly-owned subsidiary, Motor Image Group, sees Asean as the key engine of the company's
future growth following the move to benchmark assemble Subaru compact sports utility vehicles (Subs) in Malaysia.

As effort to intensify its commitment in the region, the group signed a memorandum of understanding (MoU) with Fuji Heavy Industries Ltd yesterday to facilitate the local assembly.

The agreement leverages on Tan Chong's existing assembly facilities for the production of Subaru compact SUVs for marketing and distribution in Malaysia, Thailand and Indonesia, said Motor Image Group Chief Executive Glenn Tan.

Under the MoU, production, based on the Subaru XV concept, will begin in October 2012 with a capacity of 5,000 units a year.


Subaru today enjoys strong demand for its "All Wheel Drive" vehicles, throughout the region, particularly in Asean markets, with over 2,300 units sold in 2010.

"Motor Image expects revenue to increase by more than ten-fold within the first year of introducing the XV concept model in the three markets under the MOU," he said at a media briefing here today.

Over the next two years, he said the group aimed to expand its sales network and add 60 new outlets in Malaysia, Indonesia and Thailand.

Currently, the company has a network of 76 sales and distribution outlets across 10 markets.

Tan said increased consumer purchasing power in the region opened positive perspectives and market potential for Subaru.

Disclosing the growth strategy, Tan said it would execute three sales and distribution outlets in Indonesia this month with 20 more planned through 2013.

He said one sales and distribution outlets in Thailand would open for business this month and 22 more have been planned through 2013.

Two sales and distribution outlets will also be set up in Malaysia this month with 18 more planned through 2013.

Motor Image, which introduced the Subaru in Singapore more than 20 years ago, has since set up offices in Southern China, Hong Kong, Indonesia, Malaysia, Philippines, Taiwan, Thailand, Cambodia and Vietnam. - Bernama