Defeated by Chinese Cars, Subaru Officially Closes Factory in Thailand

KatadataOTO – Intense competition in the era of electrification and the rise of newcomers from China are not only felt in Indonesia. Several Japanese manufacturers, including Subaru, have also been affected in Thailand.

In early 2024 Subaru announced that their entire vehicle lineup offered in Thailand would be fully imported from Japan because the factory would cease production.

At the end of the year, Subaru officially ceased all its production activities in the Land of the White Elephant. The decision was made by Subaru Corporation and TCIL (Tan Chong International), the sole distributor of Subaru in Thailand.

Therefore, starting in 2025, Subaru cars sold there will no longer be locally assembled. According to the FTI (Federation of Thai Industries), this decision was made because consumer preferences are now leaning towards hybrid cars or HEVs (Hybrid Electric Vehicles).

Photo : Subaru Asia

The shift in consumer interest towards hybrid cars has led many manufacturers to re-evaluate their production bases.

Furthermore, competition in the automotive industry has become more aggressive due to the influx of many Chinese cars into Thailand.

“Subaru's decision to import cars as CBU (Completely Built Up) aims to reduce costs,” said Surapong Paisitpattanapong, President of the FTI Auto Club, as quoted from Nation Thailand on Wednesday (8/1).

To survive in the Thai market, Surapong revealed that Subaru will likely import vehicles with capable and up-to-date technology that suits the tastes and needs of consumers there.