Who Makes Subaru. Everything You Need To Know

Subaru cars are manufactured by Subaru Corporation, which used to be called Fuji Heavy Industries (FHI). The Subaru brand started under FHI back in the 1950s – they were actually an aircraft manufacturer first! – and built their first prototype car in 1953.

In 2017 they officially changed the name from Fuji Heavy Industries to Subaru Corporation. Matching their automotive brand (makes sense tbh). Subaru Corporation is still the company that designs and produces all Subaru vehicles. What’s interesting is that while they operate independently. Toyota actually owns around 20% of Subaru Corporation – I had no idea they had this strategic alliance going on! They even jointly developed models like the Subaru BRZ/Toyota 86 (which my friend Sarah is literally obsessed with). So yeah, Subaru is partly backed by Toyota, but Subaru Corporation itself – headquartered in Tokyo – is the company responsible for manufacturing Subaru cars and managing the brand’s global operations.

Where Subaru Cars Are Manufactured

Japan is the main manufacturing hub for Subaru – I’ve always wanted to visit their factories there! Their primary production facilities are in Ōta City, Gunma Prefecture in Japan. The Gunma complex has multiple plants: the main assembly plant (sometimes called the Main Plant) and the Yajima Plant, which together make all those core models we know – the Impreza, Forester, Crosstrek (XV), WRX, Levorg, Outback, Legacy and that sporty BRZ coupe.

Those signature BOXER engines and transmissions are also built in Japan. Primarily at the Oizumi plant in Gunma – which supplies powertrains for Subaru vehicles worldwide. (I’m kinda obsessed with those boxer engines, the way they sound is sooooo distinctive!)

United States: Subaru’s only major production site outside Japan is in the U.S. They established Subaru of Indiana Automotive, Inc. (SIA) in Lafayette, Indiana back in 1987–1989 to meet growing demand in the American market (which is their largest market worldwide – we Americans LOVE our Subarus lol). The SIA factory started as a joint venture, and today it’s a Subaru-owned plant producing models primarily for North America, like the Outback, Ascent, Legacy, and Impreza.

Wait, here’s something cool – this plant even built the Toyota Camry under contract for a while in the 2000s as part of the Subaru-Toyota partnership! The Indiana plant has become super important for Subaru, but it still relies on key components shipped from Japan – for example, many engines and transmissions for U.S.-built Subarus are imported from the Japanese facilities. This ensures consistent engineering standards globally (which I appreciate cause my cousin had a US-built Outback and I couldn’t tell any difference from the Japan-built ones).

Other Regions: Outside of Japan and the U.S., Subaru’s vehicle assembly is pretty limited. They don’t operate full factories in Europe or China; instead, those markets get cars exported from Japan. To serve growing demand in Asia, Subaru has done knock-down kit assembly with local partners. For instance, in 2019 Subaru and their distributor partner Tan Chong International opened an assembly plant in Thailand. The first Subaru production facility in Asia outside Japan. This plant assembles the Subaru Forester from imported kits, supplying Thailand and neighboring Southeast Asian countries.

Similarly, Tan Chong’s Malaysia facility had assembled the Subaru XV and Forester for regional markets in the 2010s. These localized assembly operations are relatively small-scale (around a few thousand units annually) but strategically important. They allow Subaru to bypass import tariffs and adapt to local supply chain conditions. Subaru’s partners noted that local assembly helps them “better manage [the] supply chain, widen [the] product lineup, localise better and be less dependent on supply from Japan”.

In summary, the vast majority of Subaru cars roll out of Japanese plants (and to a lesser extent the U.S. plant), with only limited production in other countries via partnership-based CKD assembly.

Subaru’s Global Exports and Key Markets

Because most manufacturing is in Japan, Subaru is a heavily export-oriented brand. North America is BY FAR Subaru’s largest international market (trust me, I see them EVERYWHERE here in the Pacific Northwest). Subaru exports a large portion of its Japanese production to North America, and it also ships out U.S.-made models within that region.

The United States is the single biggest market for Subaru: in 2022, Subaru of America sold 556,581 vehicles – making the U.S. the dominant destination for Subaru’s output. Canada is another important market, where Subaru sold about 44,000 units in 2022. Combined, the U.S. and Canada account for roughly two-thirds of Subaru’s global sales. It’s no wonder they’re so popular here – Subaru has a super loyal customer base, especially in regions with rough weather where Subaru’s AWD reputation excels (like where my parents live in Vermont – literally EVERYONE there has a Subaru).

Europe: Subaru also exports to Europe, though in much smaller volumes compared to North America. Subaru’s sales in Europe have typically fluctuated between 30,000 and 55,000 units annually in the 2000s. A modest figure that underscores the brand’s relatively niche status in Europe (often well under 1% market share in European countries).

Key European markets include the UK, Germany, and Switzerland, but Subaru remains a low-volume player in the EU. Partly due to stricter emissions regulations and a market environment dominated by domestic European brands. My friend who moved to Germany was shocked at how rare Subarus are there compared to here! Nonetheless, Subaru maintains a network of importers in Europe and continues to export models like the Forester, Outback, and XV (Crosstrek) to meet demand from a dedicated customer segment that values Subaru’s reliability and AWD capability.

Asia & Pacific: In Subaru’s home Asia-Pacific region, the brand enjoys significant popularity in select markets outside Japan. Australia stands out as a major export market – Subaru has a strong following in Australia, with 36,036 vehicles sold there in 2022. Subaru’s market share in Australia is substantial in the crossover/SUV segment (models like the Forester and Outback are top-sellers), benefiting from the country’s preference for rugged, all-wheel-drive vehicles. (My Australian cousin swears by his Outback for those long outback drives – no pun intended lol)

Subaru also exports vehicles to other Asia-Pacific countries such as New Zealand and various Southeast Asian nations. In China, Subaru began exporting cars in 2004 and saw some growth in the early 2010s; however. Lacking a local joint-venture production (required to avoid high import tariffs), Subaru’s sales in China have been relatively limited. The company did plan a 50-50 joint venture with Chery to build a factory in Dalian around 2011, but those plans fell through, so Subaru’s China strategy remains focused on importing from Japan in limited volumes.

Other Markets: Subaru’s global exports reach smaller markets as well. The brand has a presence in Latin America (for example, in Chile and Peru via local importers) and in regions like the Middle East and Africa on a modest scale. In Russia, Subaru sold a few thousand cars per year (before the suspension of exports in 2022). In some South Asian markets like Thailand, Malaysia, and Singapore, Subaru vehicles are sold through the Motor Image distributor network (with some local assembly for certain models as noted).

Overall, Subaru’s export strategy prioritizes regions where its core strengths – AWD, safety, and durable engineering – resonate with consumers. As a result, North America, Australasia, and select parts of Asia are the key pillars of Subaru’s international sales. While Europe and other regions play a secondary role. It’s notable that over 85–90% of Subaru’s total sales come from outside Japan, underlining how dependent Subaru is on export markets for its business. (no wonder their cars are designed to handle shipping across oceans!)

Sales Data and Recent Performance

Global Sales Volume: Subaru’s worldwide sales have recently been on the upswing after a challenging few years (I’ve been tracking them cause I’m considering investing tbh). According to Subaru Corporation’s latest financial reports, global retail sales for the company reached approximately 976,000 vehicles in the fiscal year ending March 2024. This marked a strong ~14.5% increase from the previous year, as the company recovered from supply chain disruptions. (Subaru’s fiscal year 2024 roughly corresponds to April 2023–March 2024; in the prior fiscal year, global sales were about 852,000 units, illustrating the rebound.)

For context, the United States alone accounted for roughly 695,000 Subaru vehicles sold in that 2023/24 period – highlighting how North America drives Subaru’s volume. Japan’s domestic sales were around 99,000 units in that year. The remainder (~180k) were spread across all other international markets. This means nearly 90% of Subaru’s sales are overseas, consistent with past years. In calendar year terms, Subaru’s global sales in 2022 were on the order of 800,000–850,000 units (down from peak levels a few years prior, due to pandemic-related constraints), while 2023 saw improvement toward the high-900,000s range, nearing the 1 million mark again.

Regional Breakdown: North America is the largest region (with the U.S. being Subaru’s #1 country market as noted). After the U.S. (~556k in 2022) and Canada (~44k in 2022), the next biggest single-country market is Japan (~100k). Australia (~36k in 2022) is the fourth-largest country market. Europe in total might contribute around ~30-40k units annually. China typically tens of thousands (though exact figures vary year by year).

This regional mix shows that Subaru’s fortunes are tightly linked to the U.S. market. For example, in 2022 the U.S. accounted for about 65% of Subaru’s global unit sales (556k out of ~852k). Such dependence on one market is both a strength and a risk factor for the company – a strength because Subaru has a loyal following in the U.S. (I mean, just look at places like Colorado or Vermont!), and a risk because any downturn in U.S. demand or regulatory changes can significantly impact Subaru’s overall performance.

Notable Sales Trends: Subaru enjoyed steady growth through the 2010s, reaching an all-time high around 2017–2019 when global sales peaked at roughly 1 million units per year. This growth was fueled largely by booming U.S. demand for crossovers like the Outback, Forester, and Crosstrek, as well as increasing brand recognition for safety (Subaru’s EyeSight driver assist – which my partner SWEARS by) and durability.

However, like all automakers, Subaru faced headwinds in 2020 and 2021. The COVID-19 pandemic and a global semiconductor shortage led to production cuts. Subaru’s output and sales dropped sharply in those years. In fact, Subaru’s global vehicle sales fell to roughly 740,000 units in 2020–2021 (a double-digit percentage decline from the peak). The company reported consecutive sales decreases during that period and struggled to meet demand due to supply constraints. I remember trying to help my brother find a new Crosstrek in 2021 and the waitlists were INSANE!

By late 2022 and into 2023, the situation improved: Subaru ramped up production as parts supply stabilized, and sales rebounded strongly. The fiscal year 2023/24 results (976k units globally) represent the first time in a few years that Subaru’s sales have grown significantly, approaching pre-pandemic levels.

Another trend in Subaru’s sales mix is the shift toward SUVs and crossovers as the main volume drivers. In the U.S. market 2022, for instance, the top-selling Subaru models were the Crosstrek (155k) and Outback (147k), with the Forester not far behind – traditional sedans like the Legacy or small cars like Impreza now contribute far less. This mirrors industry-wide consumer preferences and has led Subaru to focus on its strengths in the crossover/SUV category. (tbh I haven’t seen a new Legacy in forever – everyone I know wants the higher ride height these days)

Overall, the sales data indicates that Subaru has returned to a growth trajectory. Anchored by its core markets and segments, after navigating a challenging but relatively brief downturn.

Subaru’s Share of Parent Company Sales (Fuji Heavy Industries/Subaru Corp)

Not everyone realizes this about Subaru. Their car business makes up most of their parent company’s revenue.

Subaru Corporation was formerly Fuji Heavy Industries. It’s a conglomerate with a small aerospace division too. The company’s finances depend mostly on Subaru cars.

The automotive segment makes up about 90% of Subaru Corporation’s total revenue. The aerospace division produces aircraft parts, helicopters, and defense equipment. It only contributes 5-10% of revenue. It was around 9% in 2022.

Unit sales show an even bigger gap. Almost 100% of units sold are automobiles. Aerospace products don’t count in vehicle unit sales. Nearly all company business comes from the car brand.

Subaru’s car sales basically are Subaru Corporation’s sales. The auto division has grown even more dominant recently. Car revenues hit record levels. The U.S. market is booming. Aerospace remains profitable but small.

Subaru’s success equals its car business success. About 90% of parent company sales come from vehicles. This includes related automotive operations.

Financial statements confirm this trend. In fiscal year 2023, most revenue was from cars. Only one-tenth or less came from aerospace. The rest came from automotive sales.

The Subaru brand drives its parent company’s sales. This explains the name change to Subaru Corporation. They focus almost entirely on automobiles now. Can you blame them? Their car business performs incredibly well.