SUBARU CORPORATION
7270・Prime Market・Transportation Equipment
Automotive
SUBARU's core business supporting its earnings base. Global sales centered on SUVs form the pillar.
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Automotive segment) | ¥4,638,342 million | ¥4,569,035 million | ↑ |
| Segment profit | ¥32,086 million | ¥420,410 million | ↓ |
| Segment profit margin | 0.7% | 9.2% | ↓ |
| Consolidated unit sales (total) | 896 thousand units | 936 thousand units | ↓ |
| Consolidated unit sales (North America) | 708 thousand units | 732 thousand units | ↓ |
Business Details
SUBARU's core segment, engaged in the manufacture, sale, and repair of automobiles and automotive parts. The company positions the U.S. as its most important market and adopts a differentiation strategy that concentrates management resources on the SUV domain. Key models include the Forester, Crosstrek, and Outback. The segment also engages in joint development of sports cars and BEVs with Toyota Motor Corporation, and receives OEM supply of mini and small vehicles from Daihatsu Motor Co., Ltd. In FY2026 (ending March 2026), consolidated unit sales totaled 896 thousand units, of which North America accounted for 708 thousand units.
Recent Overview
U.S. additional tariffs and environmental regulation costs hit directly, causing segment profit to deteriorate sharply, down 92.4% year on year.
Automotive segment profit for FY2026 (ending March 2026) was ¥32,086 million, a decrease of ¥388,324 million (down 92.4% year on year) from ¥420,410 million in the prior period. The main causes were the impact of additional tariffs in the United States, along with recorded environmental-regulation-related costs including losses related to environmental regulation credits, and BEV-related expenses. In addition, as a result of temporarily suspending part of the domestic production line due to construction work for in-house BEV production, domestic production volume decreased by 77 thousand units (down 12.8%) year on year to 525 thousand units. Overseas unit sales also decreased by 39 thousand units (down 4.7%) year on year to 793 thousand units. Although efforts to improve price mix secured a slight increase in revenue, they were insufficient to absorb the cost increases.
Key Products
Growth Drivers
- Recovery in unit sales through expansion of the ICE vehicle and alliance BEV product lineup, including the Forester and Crosstrek, toward FY2027 (ending March 2027)
- Continued improvement in price mix through optimization of product grade composition and production/sales adjustments across markets
- Maintaining solid sales in the U.S. market and steady accumulation of unit sales in global markets including Japan and Canada
- Improved production efficiency and supply stability upon completion of the mixed BEV/gasoline vehicle production system at the Yajima Plant
- Enhanced added value through expansion of models equipped with the strong hybrid system (next-generation e-BOXER)
Risks
- Continued and expanding impact of U.S. additional tariffs (significantly squeezed segment profit in FY2026 (ending March 2026) together with environmental regulation costs)
- Risk of environmental-regulation-related automotive costs, including environmental regulation credit losses, remaining elevated
- Risk of temporary decline in domestic production volume and shipment delays due to plant renovations for in-house BEV production
- Loss of sales opportunities due to geopolitical risks such as delays in vessels transporting to overseas markets amid heightened tensions in the Middle East
- Profit pressure from increased R&D expenses (¥169,424 million in FY2026 (ending March 2026), up 18.9% year on year)
- Uncertainty over the timing of electrification investment execution and market demand, and risk of increased sales incentives in the U.S. market due to intensifying competition
Last updated: June 22, 2026