Analysis of information sources in references of the Wikipedia article "Tan Chong Motor" in English language version.
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As a result of diseconomies of scale, the ex-factory prices of automobiles assembled locally are generally higher than the c.i.f. prices of imported equivalents. ... The main reason for the relatively high cost of locally assembled vehicles is the low volume of production and high cost of local components.
More important, however, is the deletion allowance which is the amount deducted from the price of CKD kit for the parts no longer imported because they are to be produced domestically. Deletion allowances are often well below the cost of the replaced components. ... Thus the incorporation of locally made components entails increased costs.
Without developing export outlets for the products of the industry, no large expansion in the volume of output is possible. The growth of the industry is constrained by the size of the domestic market ...
