Can Subaru Catch Toyota’s Top-Ranked Efficiency Performance?

What is efficiency performance? 

Subaru, along with Toyota and Lexus, is now among the top three automakers in efficiency performance. This is a significant achievement, as Subaru, a much smaller player, is catching up with the largest automaker in the world, Toyota.

Understanding 'Efficiency Performance' in the context of automakers is crucial for Subaru customers. It's not just a technical term, but it can significantly impact your experience when shopping for a new Forester, Crosstrek, Outback, or another model.

My report is based on information from Cloud Theory, where they use cutting-edge data, software, and artificial intelligence to determine which automakers are the most efficient in delivering new cars to their customers. 

"Cloud Theory says, "We are more than a concept. It is the eye of the storm, where cutting-edge data, software, and artificial intelligence meet deep industry knowledge and experience."

Sounds impressive, but what does it mean for Subaru customers?

Based on data collected and analyzed from Cloud Theory's innovative Horizon platform solution, it reports that new vehicle inventory surpassed a significant milestone, with a count of more than 3 million for the first time since April 2020. 

A few short years ago, at the height of the COVID pandemic, if you were shopping for a new Subaru Forester, Crosstrek, or Outback, you found an empty showroom and no new models on U.S. retailers' lots. It was a frustrating time to buy a new Subaru all-wheel-drive SUV.

Subaru's new model inventory has been the lowest of all automakers until this year. That's when things changed, and it flipped from being a seller to a buyer's market. That's good for new Subaru model shoppers now. Read my report here.  

Cloud Theory says that vehicle movement has also been on a longer-term growth trajectory, albeit at a slower rate than supply. The next 30 days are expected to continue that slight increase."

"Hitting the three million mark on inventory is a tangible and symbolic milestone, signifying how far the auto industry has recovered from the COVID pandemic and its aftermath. While we aren't there yet, OEMs should be vigilant to balance supply with demand and avoid the hyper-aggressive discounts that were needed to sell vehicles in the past," says Rick Wainschel, Vice President of Data Science and Analytics, at Cloud Theory.

Data from Kelley Blue Book found that some car brands have way too little inventory and others too much. Recent data shows that Lexus, Toyota, Honda, and Subaru have the least amount of inventory. As of September 30, here is the new car inventory data. 

1. Lexus 30-day supply of new vehicles.
2. Toyota 35 days
3. Honda 46 days
4. Subaru 54 days

Automotive News says, "Toyota, Lexus, Honda, and Subaru had the leanest supply levels, Cox Automotive said, while Ram, Dodge, Mini, and Lincoln had at least four months of supply on hand."

"Among the seven automakers reporting monthly sales and inventory, only Subaru saw its days' supply decrease in September, joining Toyota as the only brand with less than a one-month supply on hand." 

Subaru still has few new cars on the ground and joins Toyota and Lexus with the least new models for sale. 

However, Cloud Theory's data reveals which automakers with the fewest new cars available to sell are the most efficient in managing their inventory. Here are the top ten automakers. 

Inventory Efficiency Index Top 10 Makes • September 2024 In-Stock Vehicles. 

1. Lexus 271.4
2. Toyota 267.6
3. Subaru 174.1
4. Honda 173.0
5. Acura 113.9
6. Chevrolet 109.7
7. Kia 108.6
8. Mazda 106.3
9. GMC 99.8
10. Audi 98.6

Cloud Theory says with supplies growing and discounts/incentives rising, it is essential to view its Inventory Efficiency Index through the lens of in-stock vehicles-–those that are currently on dealer lots—to determine the OEMs that are getting at or above their fair market share given their relative inventory in the marketplace. 

The index points to manufacturers that are either short on supply or successfully generating demand. Perennial leaders Lexus and Toyota continue to do well on this metric. Still, the in-stock filter enables smaller car brands like Subaru to be among the industry leaders on the list.

Does Subaru offer manufacturer incentives to customers?

"Incentive programs are aimed at moving vehicles that are available to purchase in the short term, so brands with high in-stock Inventory Efficiency Index scores have the luxury to allocate funds to the models and geographies that need the help and reallocate from ones that don't," says Ron Boe, Chief Revenue Officer, at Cloud Theory. 

Automotive News says Subaru of America (SOA) offers 1.9 - 6.9% customer discount incentives on:

• 2025 Forester
• 2025 Outback
• 2025 Subaru Ascent
• 2025 Legacy

SOA offers 0- 5.9% customer discount incentives on:

• 2024 Crosstrek
• 2024 Forester
• 2024 Outback
• 2024 Subaru Ascent
• 2024 Solterra
• 2024 WRX
• 2024 BRZ

So, it's become a buyer's market and not a seller's market.

As I reported here this week, the 2024 Subaru Crosstrek Premium trim level sells for around $500 below the manufacturer's suggested retail price (MSRP). Other Subaru models are also selling below MSRP. 

Cloud Theory's Inventory Efficiency Index reveals that Subaru's decision-makers and retail sales managers are allocating valuable marketing and incentive dollars to locations requiring a boost in demand or reallocating vehicles to areas that are moving inventory more efficiently. 

Subaru retailers are now able to get a new vehicle like the Crosstrek shipped from another dealer in the area or even across state lines to get the customer the exact trim level, features, and color that they want. This was not possible two years ago.

What does Subaru's score of 174.1 mean? 

Subaru of America is significantly above average in managing its small inventory of new cars.

Cloud Theory's Inventory Efficiency Index determines scores for vehicle makes or models based on relative inventory and movement data compared to competitors. A score above 100 indicates that a car brand sells its inventory more efficiently than average. 

A score of 100 means that an OEM's demand is balanced with its relative supply of new vehicles. A score below 100 means there are opportunities to bring demand into better alignment with supply (or vice versa).

Can Subaru catch Toyota and Lexus in Efficiency Performance?

Subaru is one of the smallest Japanese automakers and is keeping pace with the largest automaker in the world. Its management team in Camden, N.J., is encouraging its retailers to treat the customer right and not sell any model above its MSRP. 

SOA offers new low-interest financing and manufacturer incentives to give buyers the best deal. Not all Subaru retailers abide by the automaker's Love Promise (read my report here), but most of them do. Buyers are in the driver's seat now. 

How about you? 

What has been your recent Subaru new model purchasing experience? Click the red Add New Comment link below and let us know.

I am Denis Flierl, a Senior Torque News Writer since 2012. I’ve invested over 13 years in the automotive industry in a consulting role, working with every major car brand. I am an experienced Rocky Mountain Automotive Press member. You'll find my expert Subaru analysis here. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Crosscreek Subaru