Subaru is a Japanese multinational conglomerate and is among the world’s leading automakers. The Japanese company was founded in 1953 by Kenji Kita. As of 2019, Subaru generated a total revenue of US$22.5 billion from consumers all around the world. Subaru has dealerships all around the world, 625 of which are in the U.S., one of their most popular customers. The Japanese brand is known for using boxer engine layouts in most of their cars, which increases the safety, efficiency, and longevity of the vehicle. The Japanese company holds the 440th place in the Fortune 500 list of companies listed by highest revenue.
Ebisu, Shibuya, Japan
Subaru’s top competitors include: Mazda, Changan, Dongfeng Motor, BAIC, and Mitsubishi.
How the company makes money
Subaru has been around for quite a while, and the reputation it has built for its name is notable. The Japanese company currently employs around 34,000 employees yet is one of the leading automotive brands in Japan. Not only is the Subaru great in Japan, but it’s also a very popular brand in other countries, primarily America. Subaru also manufactures almost all of its cars in Japan.
According to experts and analysts there are an estimated 1.4 billion cars on the road around the world, the global automotive industry is worth as much as US$4 trillion. The automotive industry has been one of the most known and profitable industries in the world. The innovation and evolution of modern-day vehicles are progressing and competing, especially with the rise of popularity with electric vehicles.
The Japanese company has one of the best reputations in the industry, their social purpose and CSR programs have helped in retaining this impression as well. Subaru has had a great reputation, and their main source of revenue is of course the automotive industry.
Corporations are state-issued organizations that require more legal procedures than normal companies. A corporation is an organization that owns several companies that operate in the same industry. Corporations earn a percentage and portion of each of their companies and is generally practiced to avoid competition between related brands.
Subaru is the primary company of the Subaru Corporation. The Japanese conglomerate also owns companies in aircraft, trains and other sectors of transportation.
Mazda is a Japanese multinational automaker headquartered in Hiroshima, Japan. The Japanese company is one of the higher and luxurious brands on the market. Mazda is one of the top 20 largest vehicle manufacturers and produced 1.6 million cars in 2017. As of 2019, Mazda earned a total revenue of US$31 billion in the global automobile market.
The Japanese company prides itself in creating strong and powerful cars that are yet fuel-efficient and lightweight. Mazda has over 46,000 employees and thousands of dealerships worldwide, 700 of which are situated in the United States. The middle to upper-class vehicles perform outstandingly among its competitors and have been one of the reasons for Mazda’s success.
Both Japanese companies occupy a lot of the same niches in the automobile industry, midsize and smaller cars are one of their more recognizable products. Although Mazda has better sales and more cars, the new Subaru SUVs have gotten a lot of media traction and love like the Subaru Impreza, Outback, and Forester.
The old Chinese automobile manufacturer’s origins go all the way back to 1862 when Li Hongzhang established a military supply factory. Decades later, the same factory became a plant for manufacturing vehicles which eventually led to their success now. Changan is one of the oldest Chinese automobile companies and is a state-owned enterprise.
Changan employs over 80,000 employees and has more than 30 vehicle plants worldwide. In 2019, the Chinese company grossed a total revenue of US$9.8 billion. Changan is extremely competitive and goes even as far as to offer a 10-year or 260,000km warranty, which is extremely impressive.
The Chinese company’s strength is in small cars, minivans and small trucks. Not only is Changan an automaker but also a manufacturer of engines and car components that other premium car brands use. Although both companies sell the same sized cars, Subaru is notably much more famous than Changan despite them performing with less numbers.
The Dongfeng Motor Corporation is another Chinese state-owned automobile manufacturer and is one of China’s biggest car companies. The Chinese company also manufactures car parts and components and sells them in partnership with other foreign car companies. Dongfeng was founded in 1969 by Mao Zedong and was named “Second Automobile Works” for its first 23 years of operation.
The Chinese corporation generated an annual revenue of US$19.2 billion as of 2019 as well as having a massive workforce of 150,000 employees. Dongfeng Motor is known partially for their production line of electric cars, hybrids, and multipurpose vehicles. The Dongfeng corporation first started off strong with commercial vehicles in the early 2000s but in recent times have gone completely different and now sell passenger cars are 73% of their vehicle production.
Although Dongfeng doesn’t pose as much of a threat because of their different Niche, Subaru also has their own collection of passenger vehicles. The Subaru Ascent is one of the Japanese company’s newest cars and is an impressive 8-seater SUV.
Our last Chinese company on the list, Beijing Automotive Industry Holding Co. or BAIC is a Chinese state-owned enterprise. It was founded in 1988 and quickly became one of the top ten most-productive Chinese automakers in the late 2000s. BAIC manufactured an impressive number of 1.2 million cars as of 2017.
BAIC Group operates with only 130,000 employees, which is an impressive feat considering their annual revenue of US$72 billion. Operating factories in more than 30 countries, the Chinese company also has a global presence of up to 80 countries. Most of the vehicles produced by this company are fully electric.
The Chinese enterprise so far leads the competition in both revenue sales and environmental benefits. Subaru has yet to produce electric vehicles, though plans of creating one with Toyota are already being made.
Founded in 1870 by Iwasaki Yataro, the Japanese group has recently reached 150 years of operation. Mitsubishi Companies is a group of Japanese multinational companies spread across other industries. Mitsibushi manufactured 1.2 million cars in 2017. With over 29,000 employees and a global presence in over 90 countries, the Mitsubishi brand was one of Japan’s finest.
The Japanese brand has had its ups and downs in the U.S. market, but there’s a reason why it’s still among the top. Mitsubishi cars look good and drive well, their market for off-roaders are one of their best sellers. The Japanese company generated a total revenue of only US$144 million. Even though it is incredibly low, especially among the competitors, Mitsubishi is on this list for a reason.
The Japanese car brand was one of the best brands in the early 2000s. However, with mistakes in logistics and mishaps here and there, the company eventually faced some major problems with their quality. Over the recent years, Mitsubishi has come back and is growing at a much higher rate than the other automakers. So if Subaru wants to stay ahead, he’s gonna have to watch out for what’s coming from behind. Mitsubishi.
The top 5 Subaru’s direct competitors are: Mazda, Changan, Dongfeng Motor, BAIC, and Mitsubishi. Together these companies employ 1.2 million people worldwide, with Subaru employing only 164 thousand people and ranked 5th st among Subaru’s Top 5 competitors. The top 5 competitors average about 250 thousand employees.