While more budget-oriented models appear to be entering the Australian auto market every month, their potential to steal market share isn’t a concern for Subaru Australia, according to general manager Scott Lawrence.
Australia’s cheapest new car may still be the Kia Picanto, priced at $18,690 before on-road costs, but there has been increasing competition from the likes of MG, GWM, Chery, and even Mahindra in recent times, all of which have introduced either hatchbacks or SUVs available for less than $30,000.
The MG 3 hatch starts at $21,990 drive-away, the Chery Tiggo 4 and Mahindra XUV 3XO small SUVs at $23,990 drive-away, and the GWM Haval Jolion small SUV at $26,990 drive-away. Subaru’s cheapest model, meanwhile, is the Impreza hatch for $31,990 before on-roads.
Despite that, Mr Lawrence told CarExpert at the launch of the sixth-generation Forester that Subaru has “always been a premium brand”, with limited intentions to attract budget buyers.
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ABOVE: Chery Tiggo 4 (left) and Mahindra XUV 3XO (right)
“We’ve always focused on reliability and cars at a good price point that represent great value,” he said.
“We’ve never really competed in the really price-sensitive segment; that’s not for our customers, it’s not for our product.”
While Subaru sales were up 3.4 per cent last month compared to June 2024, they were down 8.4 per cent in the first six months of 2025, and several models are selling more slowly than they did last year, including the Impreza with just 939 buyers so far this year – fewer than even the sportier and more expensive WRX.
The Impreza is being comprehensively outsold by the smaller and cheaper MG 3 (5286) and even the BYD Dolphin electric hatch (1337), despite the fact it’s priced similarly at $29,990 before on-roads.
“Yes, there’s a lot of competition in the market. It goes back to what I’m here to do, which is make sure we bring the right product in – [the new Forester] is incredible, the model lineup represents really good value for customers,” Mr Lawrence told CarExpert.
ABOVE: BYD Dolphin
“[The market is] competitive, but I’m not too concerned about the entry-level, new entrants into the market. The focus is on keeping Subaru Subaru, and knowing what that is to consumers and staying true to that.”
Speaking at the local reveal of the sixth-generation Forester in April this year, Mr Lawrence told CarExpert that sticking true to Subaru’s roots by focusing on driving characteristics, capability and safety would continue to attract customers amid increasing competition.
“We’ve spoken a lot about the Forester Strong Hybrid with all-wheel drive. That for me is the answer to a competitive market – staying true to what your customers want. That’s what we’re going to keep doing. That’s what I’m super focused on,” he said at the time.
Subaru’s dip in year-to-date sales is partly due to gaps in its lineup, as the Japanese brand gears up for the new Forester and updated Solterra electric SUV. The Forester remains the brand’s best-selling model, with 6495 units shifted so far this year, although the Crosstrek small SUV is close behind at 6002.
ABOVE: Sixth-generation Forester
Mr Lawrence has previously outlined that Subaru has “good ambitions” for the new Forester, first customer deliveries of which have already taken place for early-bird buyers who pre-ordered the all-new mid-size SUV.
He said early interest in the new Forester was strong and that the sales split between petrol variants and the new Strong Hybrid grades was about 40-60 per cent in favour of the latter.
This is despite the new Forester being nearly $5000 more expensive than the model it replaces, and the cheapest hybrid variant being $5500 pricier than the most affordable (front-wheel drive) hybrid version of the updated GWM Haval H6.
Mr Lawrence toldCarExpertthat Subaru hopes the two powertrains will help attract both previous Forester buyers and those less familiar with the brand.
“It’s both. Particularly the Strong Hybrid, that’s our best way to attract new buyers as well,” he said.
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