Subaru didn’t have the brightest 2025 in the United States, as sales were down 3.6% compared to 2024. Unfortunately, this downward trend has continued into the new year, with the Japanese brand seeing a 9.1% year-on-year drop in sales in January 2026. Like Honda in its own sales report, Subaru pointed to severe winter storms as one of the main challenges last month, causing temporary closures at several locations. Still, Subaru will be disappointed that only two of its nine model lines managed to increase sales compared to a year ago.
Hatchbacks, Sedans, and EVs Hit Hardest
2025 Subaru Impreza
Subaru
Overall, Subaru sold 42,157 vehicles across the country last month, down from 46,354 in January 2025. Here’s a look at how each model fared.
The Impreza and Legacy were the biggest losers, with sales down over 52% for both. The Legacy’s numbers aren’t a mystery, since the midsize sedan has gone out of production, but the 2026 Impreza’s higher price and smaller lineup simply aren’t cutting it with buyers. WRX sales were steadier, but still down 23%.
The new Subaru Outback hasn’t seen any growth over the old one yet, but Subaru did say dealers are still transitioning from the older, 2025 model to the new one. Fortunately, the Forester compensated somewhat for poor sales elsewhere, with a 22.2% increase in sales to keep it as the brand’s most popular model.
“January brought major winter storms that blanketed much of the country and led to temporary closures at many locations, yet Subaru retailers delivered another standout month,” said Troy Poston, Senior Vice President of Sales, Subaru of America Inc. “Their resilience and industry-leading customer service shine through no matter the conditions. With a rugged, reliable lineup spanning gas, hybrid, and fully electric vehicles, Subaru is poised for continued growth and ready to help every customer find their ideal match.”
What Subaru Needs To Get Back On Track
Kristen Brown
Subaru needs to focus on its crossover range, where the bulk of its sales stem from. Although the Crosstrek and Forester are finally available with hybrids, they’re too expensive. The Crosstrek Hybrid starts at $33,995, whereas you can get a Toyota Corolla Cross Hybrid for $29,395. For a Forester Hybrid, you need to cough up at least $36,595, which is $4,695 more than the RAV4 Hybrid.
From Hyundai to Honda, hybrid sales are soaring right now. EV demand has dipped, but consumers still want efficient options, and hybrids occupy that sweet spot. By positioning its hybrid crossovers at a higher price point, Subaru is losing out to rivals. Furthermore, there is currently no hybrid option for the three-row Ascent.
Subaru also needs more affordable gas-powered models in the budget segment. An Impreza now starts at $26,595, whereas the much fresher Kia K4 Hatchback begins at under $25k. Subaru’s hatch doesn’t outshine its rivals in any particular area, either, making the price hard to justify.
Related: 2026 Subaru Crosstrek Hybrid Pricing Makes The Bigger RAV4 Look Like A Bargain
Final Thoughts
Subaru
Subaru is in a tough spot right now. The automaker still has a small but loyal following in the United States, but anyone looking for a reliable Japanese car will find more diversity and value from Honda and Toyota.
Subaru’s one competitive advantage used to be that it was seen as the go-to Japanese brand for anyone wanting something more rugged and capable on dirt roads. But rivals have responded: Honda is seeing huge success with its TrailSport sub-brand, Toyota has a new RAV4 Woodland, and even Mazda (a brand known more for on-road dynamics than adventure-minded vehicles) now has the capable CX-50.
Subaru doesn’t need a total overhaul, but its hybrid pricing strategy needs an urgent rethink. Besides this, a marketing strategy that goes beyond the brand’s rugged image—at a time when many rivals are offering the same thing—could be just what it needs.
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