SUBARU

Basic Information

Stock Code
7270
Industry
Transportation Equipment
Category Detail
Automobiles
Prefecture
Tokyo
Establishment Year
July 1953
Listing Year
March 1966
Official Website
https://www.subaru.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nissan Motor Co., Toyota, Mitsubishi Motors, Mazda, Honda, Suzuki

Overview

SUBARU is a Japanese heavy industrial manufacturer established in 1953, with strengths in the automotive and aerospace sectors both in Japan and overseas.

Current Situation

SUBARU recorded consolidated net sales of 4.7029 trillion yen, operating profit of 232 billion yen, and net profit of 384.5 billion yen for the fiscal year ended March 2024. It is primarily known for automobile manufacturing, earning high praise in the US market thanks to its unique horizontally opposed engines and all-wheel drive technology. In the aerospace division, it manufactures major components for Boeing passenger aircraft and handles development and production of helicopters and trainer aircraft for the Ministry of Defense. It has formed a capital alliance with Toyota Motor Corporation, focusing on technical collaboration and joint platform development. The industrial machinery division was transferred to Yamaha Motor in 2017, allowing concentration on automotive and aircraft businesses. In recent years, it has pursued SDGs compliance and digital transformation (DX) initiatives, aiming for sustainable growth. It contributes to local communities and has improved support environments for multilingual workers. Overseas, it operates bases in North America and Asia, strengthening its global manufacturing and sales framework. Moving forward, it will deepen safety and environmental technologies, striving to enhance competitiveness and achieve sustainable growth toward 2030.

Trivia

Interesting Facts

  • Company name SUBARU derives from the six stars of the Pleiades star cluster.
  • SUBARU's horizontally opposed engine is a proprietary technology highly acclaimed.
  • Popularity in the US market stems from AWD and safety performance.
  • Responsible for major parts of Boeing 777 and 787 main wings in aircraft wing manufacturing.
  • One of the few independent manufacturers with capital and technical alliance with Toyota Motor Corporation.
  • Long history in bus bodies and railway vehicle manufacturing, with cumulative production exceeding 10,000 units.
  • Actively pursuing defense-oriented unmanned aerial vehicle development.
  • Once produced scooters like the Rabbit.
  • Ebisu Subaru Building has housed headquarters after multiple relocations.
  • Subaruists is the nickname for passionate SUBARU car fans.
  • Gunma Prefecture, home to domestic factories, is known as 'Subaru Town'.
  • 1990s unqualified inspection scandal led to corporate culture review.
  • Experienced domestic factory halt in 2019 due to electric power steering defects.
  • Possesses world-class main wing parts manufacturing capacity in aircraft sector.
  • Earned high trust over years in helicopter maintenance for Ministry of Defense.

Hidden Connections

  • Influences partner Toyota Motor Corporation in vehicle production and quality control.
  • Aerospace technology applied to automotive safety technology development.
  • Overseas auto market, especially North America, forms the pillar of management.
  • Builds diverse cooperative relations with local communities, striving for improved work environments.
  • Past railway vehicle manufacturing technology aids composites technology development.
  • Long-term transactions with major domestic and international defense agencies in aerospace work.
  • Ministry of Defense multi-purpose helicopter development symbolizes Japan's aircraft manufacturing technology.
  • Maintaining independent path amid automotive industry transformation and globalization.

Future Outlook

Growth Drivers

  • Growth in global EV market and対応
  • Strong sales base in US market
  • Sustained expansion in aerospace industry
  • Enhancement of advanced driver assistance systems (ADAS) technology
  • Proactive response to sustainability
  • Improved development capabilities through technical collaborations and capital alliances
  • Enhanced brand value through symbiosis with local communities
  • Sales expansion via emerging market development
  • Digital transformation of manufacturing processes
  • R&D in unmanned aerial vehicles and next-gen mobility
  • Strengthening global parts supply chain
  • Entry into mobility services business

Strategic Goals

  • Raise EV ratio to over 70%
  • 50% CO2 reduction (vs. 2010)
  • Achieve over 60% of global sales from overseas markets
  • Full rollout of vehicles with cutting-edge safety tech
  • Expand world share in aerospace
  • Establish fully sustainable production lines
  • Optimize productivity and quality control via DX
  • Achieve over 40% employee diversity rate
  • Enrich co-development programs with communities
  • Advance practical unmanned aerial vehicle projects

Business Segments

Aerospace Division

Overview
Supplies high-quality products through development and manufacturing of aircraft parts for defense and civilian demand.
Competitiveness
World-class main wing manufacturing technology and composites development capabilities
Customers
  • Ministry of Defense
  • Boeing
  • Airbus
  • Civil Airlines
Products
  • Fixed-Wing Main Wings
  • Tail Components
  • Helicopter Fuselages
  • Space-Related Equipment

Automotive Parts OEM

Overview
Provides OEM supply of high-quality engines etc. to partners and promotes technology sharing.
Competitiveness
Proprietary horizontally opposed engine design and manufacturing technology
Customers
  • Toyota Motor Corporation
  • General Motors
Products
  • Horizontally Opposed Engines
  • Chassis Components

Maintenance and Repair Business

Overview
Provides long-term operational support services for Self-Defense Forces aircraft.
Competitiveness
Highly reliable support based on over half a century of track record
Customers
  • Air Self-Defense Force
  • Ground Self-Defense Force
  • Maritime Self-Defense Force
Products
  • Periodic Aircraft Maintenance
  • Training Support
  • Spare Parts

Environmental Technology

Overview
Deploys sustainable technologies aimed at reducing environmental impact.
Competitiveness
High-efficiency environmental equipment applying aerospace technology
Customers
  • Local Governments
  • Construction Companies
Products
  • Garbage Collection Vehicles
  • Wind Power Equipment

Railway Vehicle Business

Overview
Provides services to domestic and international customers through manufacturing and improvement of railway vehicles (production ended).
Competitiveness
Extensive manufacturing experience and high-quality vehicle design
Customers
  • JR Companies
  • Private Railways
  • Third-Sector Railways
Products
  • Diesel Multiple Units
  • Electric Trains
  • Passenger Cars
  • Maintenance Vehicles

Housing and Construction Related

Overview
Manufactured and sold prefab building materials in past operations.
Competitiveness
Construction know-how and quality control technology
Customers
  • Construction Companies
  • Telecom Operators
Products
  • Prefab Housing
  • Temporary Unit Houses

Agricultural and Construction Machinery

Overview
Broadly deploys centered on supply of small industrial engines.
Competitiveness
Multi-purpose equipment using highly durable engines
Customers
  • Agricultural Corporations
  • Construction Firms
Products
  • Tractor Parts
  • Pumps
  • Rammers

Next-Generation Technology Development

Overview
Contributes to national defense and space industries through innovative technology development.
Competitiveness
Advanced technology research and multi-function system development
Customers
  • Government
  • Research Institutions
Products
  • Unmanned Aerial Vehicles
  • Aerospace Simulation

Parts Manufacturing Outsourcing

Overview
Manufactures and provides high-precision parts to external companies.
Competitiveness
Advanced machining technology and quality assurance system
Customers
  • Other Automakers
  • Defense-Related Companies
Products
  • Machined Parts
  • Composite Material Parts

Technology Services

Overview
Supports digital transformation.
Competitiveness
Efficiency improvement proposals based on technical expertise
Customers
  • Manufacturing Industry
  • Management Consultants
Products
  • DX Support
  • Logistics Improvement

Overseas Marketing Support

Overview
Supports global expansion with marketing capabilities.
Competitiveness
Flexible strategies tailored to regional characteristics
Customers
  • Foreign Corporations
  • Local Distributors
Products
  • Market Research
  • Brand Building Support

Safety-Related Technology

Overview
Advances research and commercialization of advanced safety technologies.
Competitiveness
Proprietary visual assistance technology and sensor fusion
Customers
  • Automakers
  • Government Agencies
Products
  • EyeSight Technology
  • Driver Assistance Systems

Competitive Advantage

Strengths

  • Possesses unique technology in horizontally opposed engines and all-wheel drive
  • Global sales power centered on North America
  • High technological capabilities and defense-related track record in aerospace
  • Stable foundation from capital and technical alliance with Toyota
  • Customer trust in high quality and safety performance
  • Promotion of environmental technology and electrification
  • Strong brand and dedicated fan base (Subaruists)
  • Established vertically integrated production system
  • Technological superiority from long-term R&D investment
  • Comprehensive production and design bases in Japan
  • Mature supply chain management
  • Diverse aerospace product lineup
  • Strong community relations
  • Ongoing improvements in quality control systems
  • Commitment to sustainable business management

Competitive Advantages

  • Proprietary horizontally opposed engines excel in noise and vibration, differentiating from competitors
  • Mature AWD technology delivers superior off-road performance
  • Brand recognition and reliability in the US market
  • High quality and technology in aerospace
  • Development efficiency and technology integration from Toyota collaboration
  • Market-leading with perfect safety technology (EyeSight)
  • Strong customer loyalty to products
  • Advanced in sustainable mobility research
  • Proprietary regional embedded development and production system
  • Business risk diversification with diverse product lines
  • Trust earned from major global aircraft manufacturers
  • Maintains competitiveness with high-efficiency production processes
  • Enhanced brand image through community contributions
  • Future-oriented with promoted DX and sustainable technologies
  • Technology accumulation based on diverse industrial experience in buses, railways, etc.

Threats

  • Global automotive industry's shift to EVs and intensifying competition
  • Uncertainty in defense-related demand due to international situation changes
  • Rising environmental regulations and decarbonization compliance costs
  • Impact of exchange rate fluctuations on profitability
  • Competitor brand strengthening in overseas markets
  • Instability in semiconductor and parts supply
  • Risk of brand image decline from past scandals
  • Shrinking domestic market due to population decline
  • Engineer shortages and talent outflow risks
  • Cost pressures from soaring raw material prices
  • Risk of strategy changes by technical alliance partners
  • Potential delays in new technology development due to stricter regulations

Innovations

2023: Joint EV SUV Platform Development with Toyota

Overview
Co-developed SUV platform foundation for EVs with Toyota, achieving high-efficiency production.
Impact
Contributes to accelerated EV rollout and cost reductions

2023: Mass Production Start of Next-Gen Multi-Purpose Helicopter UH-2

Overview
Established full-scale mass production system for UH-2 multi-purpose helicopter for Ground Self-Defense Force, accelerating production.
Impact
Strengthens competitiveness in defense industry

2022: Renewal of Driver Assistance System EyeSight X

Overview
Introduced next-gen AI-based EyeSight X to aim for accident reduction.
Impact
Improves customer satisfaction and brand evaluation

2021: Mass Production Application of Composite Materials for Aircraft

Overview
Established design and manufacturing technology for Boeing 787 main wing composite parts at mass production level.
Impact
Contributes to improved production efficiency and performance

2024: Factory Smartification through DX Promotion

Overview
Advances digitalization of production sites using AI and IoT, improving quality control and productivity.
Impact
Achieves manufacturing cost reductions and flexible production system

2022: Improvement of Fuel Efficiency and Emissions Testing Processes

Overview
Rebuilt thorough quality assurance system to enhance accuracy of test data.
Impact
Strengthens legal compliance and restores brand trust

2020: Full Entry into UAV Technology Development

Overview
Undertaking development of high-function UAVs such as unmanned reconnaissance aircraft for Self-Defense Forces, paving future prospects.
Impact
Expands technological superiority in defense sector

2023: Development of New Horizontally Opposed Engine for Environmentally Friendly Vehicles

Overview
Preparing market launch of new horizontally opposed engine achieving low fuel consumption and low emissions.
Impact
Enhances environmental compliance and market competitiveness

2021: Mass Production Entry for Boeing 777X Center Wing

Overview
Achieved high-quality production for center wing of global passenger aircraft Boeing 777X.
Impact
Solid partnership with global aircraft manufacturers

2024: Expansion of Renewable Energy Power Purchases

Overview
Significantly contributes to CO2 reduction by expanding company's renewable energy power purchases.
Impact
Strengthens corporate commitment to reducing environmental impact

Sustainability

  • Promotion of 100% renewable energy use
  • CO2 emissions reduction plan in manufacturing processes
  • Acceleration of environmentally friendly vehicle development
  • Support for environmental education in local communities
  • Building sustainable supply chains
  • Maintaining high waste recycling rates
  • Promoting employee diversity and inclusion
  • Thorough safety and health management
  • Sustainable raw materials procurement policy
  • Information disclosure via environmental reports
  • Promoting car sharing usage
  • Strengthened compliance with environmental laws