In Singapore, the group experienced a slowdown in sales due to a contraction in passenger vehicle volume, impacted by shifting COE cycles and stricter Euro 6 emission standards. The decline in sales in China came on the back of escalation of emission regulations and the competitive dynamics in the motor vehicle market, resulting in a decline in Subaru sales over the year.
SINGAPORE (Mar 27): Tan Chong International, the local distributor of Subaru cars via subsidiary The Motor Image Group, ended FY17 with earnings of HK$501.9 million ($83.7 million), more than double its FY16 earnings of HK$191.1 million on improved operating margins.
The improved bottom line comes despite a 5.3% decline in full-year revenue to HK$15.9 billion from HK$16.7 billion a year ago, which was primarily due to a sales volume decline from the motor vehicle distribution and retail division, as well as a slowdown in Singapore and China.
