Tan Chong Motor Assemblies (TCMA) has entered into an assembly agreement with TC Subaru Sdn Bhd, which is a subsidiary of Tan Chong International Limited, the company handling Subaru in our region and beyond. This was announced by Tan Chong Motor Holdings, the owner of TCMA, in a filing to Bursa Malaysia.

The agreement is for the assembly of passenger vehicles by TCMA for TC Subaru, and is effective from March 6, 2012 to December 31, 2013. This duration can be extended with a six-month notice. The installation of assembly infrastructure is at the cost and expense of TC Subaru. Not mentioned now, but it was previously revealed that the Subaru CKD programme will happen at Tan Chong’s Segambut plant in KL.

Nothing new here, merely a formalisation of the plans we broke to you last July, where Fuji Heavy Industres (maker of Subaru) inked an MoU with Tan Chong to make Malaysia the ASEAN production hub for Subaru. The model in question is the Subaru XV crossover, a raised C-segment hatchback with the brand’s famous Symmetrical AWD. Click here for our first drive story.

Production will start later this year, and the planned 5,000 units per year will be divided for sale equally between Malaysia, Thailand and Indonesia. To sell the cars, Motor Image is embarking on a big expansion plan in Malaysia with 18 outlets planned through 2013. This means that by 2014, Malaysia will have 20 Subaru outlets if all goes to plan.

Click here to read our exclusive interview with Glenn Tan, Executive Director of TCIL, where he talks about Subaru’s plans for the region, and Malaysia.