Launch of the first made in Malaysia Subaru XV

During the event, we managed to sit down with Motor Image CEO down for a short discussion on the launch of their latest model and the implications for our local market.

The Japanese have always had a very stringent code for build quality and standards that we have adhered to. In fact, Fuji Heavy Industries have inspectors that are stationed here to ensure this strict code is upheld. An added blanket of quality assurance is our VS (Vehicle Safety) inspectors that ensure vehicles meet the safety standards that are set in Japan.

In fact, the cars that leave our Malaysian plants are built to such a high quality that feedback from our customers is that there is no discernible difference between the Malaysian CKD and the CBU (Completely Built Up) models from Japan.

This was a pleasant surprise for us and has convinced us that our decision to invest in our plants to meet this standard of high quality was the right one.

In recent times, we have seen a market preference for such cross over vehicles as consumers are looking for the space and convenience of an SUV. And the XV has proven to be at the forefront of this market trend.

Due to the high COE prices in Singapore right now, whatever we save from our lower production costs here is neutralised by the $100,000 price tag for COEs. For this price range, customers in Singapore demand cars with more attractive options (i.e. sunroof, push start, etc) while our factory are geared more towards the greater mass market in Asia with mid-range options.

Currently, we are focused on the sales of our Subaru XV to ensure that we get the volume sales we need to justify our investments in this CKD product. Once we are convinced that it is a business model that works, we can consider other models for CKD in the near future.

Credits: Edited by Benjamin G. Kline, Photos by Subaru