Subarus in SE Asia
Posted: Wed May 02, 2012 5:39 am
I’m currently in Bangkok, Thailand and not a Subaru to be seen, although apparently there is a dealer in Bangkok and a few around...somewhere! Thailand is currently selling ~800,000cars/yr and a similar number of ‘pick-ups’ (Hilux utes) and growing a a quick rate. Subaru needs to be here and in other nearby countries if it wishes to grow its base and not get totally swamped by Toyota et al. Toyota has ~50% of the Thai car market.
At least I saw 3 Subarus (2 SH Foresters) in 3 days in Singapore... must have lower tariffs there!
On another note, diesels are being accepted here. The taxi fleet in Singapore is either CNG or diesel, and in both Bangkok and Singapore quite a few M-Bs and BMWs are the diesel engine types.
The issue seems to be the ASEAN (Association of SouthEast Asian Nations) FTA (Free Trade Agreement). As all Subies are produced in Japan (or Indiana for the US/North American market) there’s no manufacturing base within ASEAN- so all imports get hit by tariffs and excise. There’s 0% tariff between ASEAN countries. Toyota, Isuzu, Nissan, Ford, Mazda, Honda all have major manufacturing bases in Thailand (that’s where a lot of our ‘pick-ups’ come from). Toyota has ~42% of the new passenger vehicle market, Honda 2nd with ~30%. In the pick-ups, it’s Toyota with ~51% and Isuzu with ~25%. Figures reported in October 2010.
However it seems Subaru are trying to get in- at least half-heartedly- they’re going to assemble the XV in Malaysia to start some ASEAN market penetration. However the figures they’re hoping are 100-200 Thai sales this year, and 5000 across Malaysia/Thailand/Indonesia, which is ‘piddling in the sea’. The two vehicles they’re going to bring in are the XV (good) and the (ahem) BRZ- I can just see that carving up the (really) lumpy Bangkok roads through the gridlock!
Given the preponderance of Toyota Corollas, Camrys, and especially Hilux/Isuzu 4-door pick-ups as family vehicles I think the XV and Forester would go down well, Impreza possibly too. I’ve even seen a manual diesel Landcruiser being driven by a lady out of our hotel carpark...and the locally produced 4-door utes are very popular. You don’t see Klugers, Prados, RAV4s, X-Trails etc.
It may be that Subaru will have to bite the bullet and establish manufacturing outside of Japan. However the tariffs are coming down year-by-year. Either way I suspect Subaru need to access these rapidly growing markets with a voracious appetite for Japanese brands if they wish to survive/prosper independently in the future. Volumes provide income that funds model development and provides clout to negotiate better deals or quality with suppliers. It’s increasingly difficult for car companies to stand alone nowadays.
At least I saw 3 Subarus (2 SH Foresters) in 3 days in Singapore... must have lower tariffs there!
On another note, diesels are being accepted here. The taxi fleet in Singapore is either CNG or diesel, and in both Bangkok and Singapore quite a few M-Bs and BMWs are the diesel engine types.
The issue seems to be the ASEAN (Association of SouthEast Asian Nations) FTA (Free Trade Agreement). As all Subies are produced in Japan (or Indiana for the US/North American market) there’s no manufacturing base within ASEAN- so all imports get hit by tariffs and excise. There’s 0% tariff between ASEAN countries. Toyota, Isuzu, Nissan, Ford, Mazda, Honda all have major manufacturing bases in Thailand (that’s where a lot of our ‘pick-ups’ come from). Toyota has ~42% of the new passenger vehicle market, Honda 2nd with ~30%. In the pick-ups, it’s Toyota with ~51% and Isuzu with ~25%. Figures reported in October 2010.
However it seems Subaru are trying to get in- at least half-heartedly- they’re going to assemble the XV in Malaysia to start some ASEAN market penetration. However the figures they’re hoping are 100-200 Thai sales this year, and 5000 across Malaysia/Thailand/Indonesia, which is ‘piddling in the sea’. The two vehicles they’re going to bring in are the XV (good) and the (ahem) BRZ- I can just see that carving up the (really) lumpy Bangkok roads through the gridlock!
Given the preponderance of Toyota Corollas, Camrys, and especially Hilux/Isuzu 4-door pick-ups as family vehicles I think the XV and Forester would go down well, Impreza possibly too. I’ve even seen a manual diesel Landcruiser being driven by a lady out of our hotel carpark...and the locally produced 4-door utes are very popular. You don’t see Klugers, Prados, RAV4s, X-Trails etc.
It may be that Subaru will have to bite the bullet and establish manufacturing outside of Japan. However the tariffs are coming down year-by-year. Either way I suspect Subaru need to access these rapidly growing markets with a voracious appetite for Japanese brands if they wish to survive/prosper independently in the future. Volumes provide income that funds model development and provides clout to negotiate better deals or quality with suppliers. It’s increasingly difficult for car companies to stand alone nowadays.
Just look at the condition that thing is in, well by the photos anyway