When it comes to Japanese automakers, the ones that come to mind immediately are Toyota, Honda, and maybe even Nissan. These three have transformed the world's automotive market over the past few decades, as their penchant for build quality and competitive pricing have forced brands from other countries to step up their game. After all, the introduction of Japanese marques in the US around the 1970s fundamentally altered the course of US car culture, and it wasn't just by chance.Subaru, another Japanese automaker, deserves recognition all the same. While it's not as big of a name as the aforementioned brands, it's managed to garner quite a large following over the years. In fact, for many of those years, Subaru enjoyed the highest rate of brand loyalty in the mass-market pool. However, these days, things seem to be changing for Subaru, and not for the better. It's been losing more and more customers to its competitors, namely Toyota, making its future seem less than bright. Subaru Has An Image Problem SubaruIf we peel back the years to about 2000, Subaru was near the height of its popularity. It had spent much of the 1990s dominating the World Rally Championship (WRC), most notably in 1995, 1996, and 1997, when the marque won the WRC Manufacturer's Championship. This ended up catapulting Subaru's popularity among gearheads, especially those who were interested in rallying. However, the brand was also famous for other things, too.Overall, Subaru earned much of its popularity simply by building rugged models. Alongside the iconic Impreza WRX and Impreza WRX STI, Subaru also built things like the Outback which, until recently, was a tough-as-nails wagon that managed to be just as at-home off the road as it was on it. Additionally, the Subaru Legacy sedan was popular in its own right due to its use of Symmetrical All-Wheel Drive (SAWD), making it one of the few family sedans on the market to offer this feature upon its release in 1989.Subaru In addition, Subaru also used to be known as the quirky, left-field brand. While others were building things like the RAV4, CR-V, and Altima, Subaru was building things like the aforementioned Outback wagon, a model that really didn't have an equivalent on the market. This meant it had its niche section of the market all to itself, resulting in strong sales. The same could be said about the AWD Legacy, world-renowned Impreza, and the Subaru Outback, which could also be had as an all-wheel drive, raised sedan back in 2000.Subaru These days, the Subaru brand is a shadow of its former self. Over the last decade or so, it's managed to can its rather successful WRX, a model that gave Subaru its competitive edge in the sporty mass-market. The rugged, small wagons that gained the brand much of its fame in the first place are now all gone. The Outback and Forester are now decidedly crossover SUVs, blending in with the likes of Toyota and Honda models. This all makes it tougher for Subaru to stand against the giants, and the worst part for Subaru is that buyers are starting to notice. The Result As Subaru seems to have moved further and further from what made it successful in the first place, once-loyal customers are beginning to leave in droves. Just this year, its sales have tanked. Beginning in Q2 2025, sales started to slip. The brand saw an 8.6 percent loss over the previous year. By September of last year, Subaru had only managed to sell about 46,007 models compared to 56,414 sold in September 2024. As things stand currently, Subaru managed to sell 32.2 percent fewer models in Q1 2026 as opposed to Q1 2025. If you listen closely, you can hear the alarm bells sounding at Subaru headquarters from here. Toyota Is Swooping In From The Sidelines Jared Rosenholtz/CarBuzz/ValnetThe brand that's, arguably, benefiting the most from Subaru's diminishing character is Toyota. As Subaru has eroded its heritage away with mainstream, easy-to-digest styles and models, Toyota has upped its off-road game, and manages to fill the gap. For example, the Toyota RAV4 Woodland was recently released, which is a hardcore, off-road-oriented model that manages to take the RAV4 into a much more rugged direction, much like the Subaru Outbacks and Foresters of old.It's not just Toyota, either. Honda's in on it, too. Over the past few years, Honda's managed to churn out a couple of rugged off-roaders of its own, beginning with the introduction of its TrailSport trim back in 2021. Since then, there have been three models to don the TrailSport badge, those being the Passport SUV, Pilot SUV, and the Ridgeline pickup. When equipped with the package, models receive standard torque-vectoring all-wheel drive, bigger skid plates, higher ground clearance courtesy of an off-road-tuned suspension, and special interior and exterior accents.Honda Toyota and Honda offer rugged off-roaders that walk the walk and talk the talk. At the same time, Subaru has begun to lose its image. It's starting to get easier to see what's happening here. To hammer it home, let's compare some models and see what's what with each. In the table below, we'll take a look at the Toyota RAV4 Woodland, the Honda Passport TrailSport, and the Subaru Outback Wilderness. Using straight specs, we can see which comes out on top:*Specs courtesy of Subaru, Toyota, Honda, & RepairPal.comBased on the info above, the Subaru does manage to eke out a lead when it comes to ground clearance and breakover angle, but our other two competitors beat it out in other, major categories such as price and power output. Not to mention, they're also well-versed in off-roading as a whole, too. In addition, the Subaru managed to depreciate at a rate of roughly 35 percent over five years. The RAV4, however, loses just 28 percent of its value over the same period. The Passport loses the depreciation battle, as it manages to lose 45 percent of its value in five years.So, why spring for the Subaru when models that look similar and boast better overall brand reliability ratings exist? For one thing, the 2.4L found within the Subie, while regarded as fairly reliable, is known to be highly sensitive to maintenance. Without it, major components can fail, meaning the average reliability rating shown above relates to concerns that aren't something minor that can be shrugged off. A multi-thousand-dollar engine overhaul or replacement can be financially ruinous. Subaru Buyers Were Once The Most Loyal Of All SubaruIt wasn't that long ago that Subaru buyers made up the most loyal customers on the market. According to J.D. Power, the brand managed to achieve its "Best Brand Loyalty Award" for three consecutive years, spanning 2019, 2020, and 2021. At the time, the popular Subaru WRX was still in production, the Forester was still, decidedly, a wagon, and the AWD-equipped Legacy family sedan was still in production. Following the 2021 model year, the WRX was redesigned, gaining a much more divisive, polarizing look, along with a higher price tag. In 2025, the Legacy got the ax, and 2026 marked the first time the Outback could no longer be referred to as a wagon as it's fully made the transition to a crossover SUV.You don't have to look hard to find evidence of Subaru defectors, either, many of whom are opting for Toyota models over their beloved Subies. One Reddit user lamented that their 2015 Forester's maintenance costs eclipse those of their 2008 Hyundai Santa Fe. So, they're looking into swapping the Forester for a RAV4. Another commenter said they wanted to switch to a RAV4 from their 2016 Forester due to concerns about CVT reliability, as failed units are often expensive to replace.These days, Subaru has effectively lost its buyer loyalty crown, with Toyota now taking the top spot as 62.6 percent of its buyers become returning customers. Subaru still ranks highly, at 60.6 percent, but the damage has been done. Where Does Subaru Go From Here? SubaruSubaru has embarked on a plan to recover some of its lost sales. According to the automaker, it's putting more eggs into the EV and hybrid vehicle basket and has also introduced a WRX STI Sport# prototype in an attempt to reignite some enthusiast buzz. The Outback's move into a more traditional crossover SUV frock was done to try and appeal to a wider audience, but in doing so, has put it more into the line of fire of other models like the Mazda CX-50 and the Honda Passport.As it stands now, Subaru isn't all that far gone. According to numerous anecdotal reports, the Outback's redesign is a huge issue for many folks. Does Subaru continue as it is now, or is a shift back to its more quirky, rugged roots warranted? Only time will tell where the Japanese automaker takes itself from here.
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