But some manufacturers are juggling burgeoning buyer demand for SUVs with niche sales of wagons to build their sales opportunities.

In some cases, including with the Toyota Camry, Ford Falcon and Subaru Liberty, wagon variants were dropped and buyers wanting more storage space in the rear were led to other models such as the Toyota Kluger, Ford Territory and Subaru Outback.

Subaru Levorg

However, some buyers want nothing but a wagon.

So, as we have watched passenger car-derived wagon sales decline against an onslaught of SUV models, Subaru is looking to boost its sales in Australia by 2500 a year with the Levorg.

While Subaru expects the Levorg wagon, launched this month, will be seen as a wagon competitor to its own Forester and Outback, and a rival to its WRX sports sedan, the Japanese car-maker is also hoping to attract new customers.

In its marketing outline for Levorg, Subaru believes that, after an initial burst of buyer interest in its new performance wagon, sales will settle to an average of about 200 units a month.

Subaru sees the Levorg as a sporty wagon for an urban market, along with the Mazda 6 and European carmakers including Mercedes-Benz. – Click to enlarge

Levorg has an entry point of $42,990 plus on-road costs for the GT, but Subaru predicts the top-spec GT-S ($48,890) and the Australian-fit dress-up option GT-S Spec B ($52,890) will be the best sellers.

Subaru Australia managing director Nick Senior said the problem may not be finding buyers, but finding sufficient stock to meet demand and wants the Levorg to slip into the crowded market as a showroom extension of the Impreza – that has no wagon derivative – with the bonus of a sporty character and generous cabin dimensions.

Subaru says Levorg’s leanings are for sporty and suburban driving environments, differentiating it from its own Forester (more off-road orientated) and putting it in the same sports-wagon basket as the petrol-fuelled Mazda6 ($33,790-$46,690) and Renault Megane ($38,500-$42,500 for the 2.0-litre models) wagons.

Small and Large wagon sales are outstripping the mid-size segment indicating further growth for wagons such as the Levorg. – Click to enlarge

It has argued that other rivals, including the obvious Skoda Octavia RS petrol wagon ($39,090), Mercedes-Benz CLA Shooting Brake ($52,400-$89,500) and BMW 3 Series Touring ($65,300-$73,300), are skewed towards the luxury market, but buyers in the segment may disagree, especially given similar performance.

Subaru sees the Levorg as being positioned between the top-end Mazda6 wagon and the entry-level Volvo XC60.

While it is all-wheel drive, the Levorg’s low ground clearance and pronounced front overhang means it is no competitor to Volkswagen’s Alltrack, Audi’s Allroad or the Skoda Octavia Scout.

Subaru believes it has found the sweet-spot pricing with its poisitioning of the new wagon between established Japanese wagons and those from Europe. – Click to enlarge

But do Australian buyers want a wagon when the automotive buffet is regularly restocked with an alluring array of SUVs?

Subaru is positive about the answer and signals that the wagon market is more about style and performance while the SUVs are trending more to space needs for families with not many offerings in the way of sports handling and engine performance.

Subaru says that despite the onslaught of SUVs, the wagon market in Australia has gleaned some of the glow shown in other markets, particularly Europe and Japan, where some of the more appealing sports cars have a wagon silhouette.

The Levorg is intended to create a new category between the existing Impreza WRX and STI sedans and the now-obsolete Liberty wagon. – Click to enlarge

“Buyers will be young singles, couples and families,” Mr Senior said.

“We also see some ‘SUV rejectors’ who are moving away from the genre, as well as traditional buyers of sports cars and we expect growth from the luxury segment as well.”

According to Subaru’s marketing charts, the sub-$40,000 small-wagon and the $60,000-plus prestige-wagon sector are growing, with nearly a threefold increase in sales from 2013 to 2015 in the former and a 70 per cent increase in the later thanks to new models and greater public interest.

Subaru Australia has gone it alone in the world by picking up the GI Joe rights from its US owner, toymaker Hasbro. – Click to enlarge

While pricing is seen as a benefit, Subaru highlights the advantages of comparing its cabin size with some competitors and even with its now-obsolete Liberty wagon, which used to sit a segment higher. This wagon was dropped to make the Liberty an all-sedan model, with wagon buyers led to the Outback.

Overall, Subaru says it has sales of 18,900 units to the end of May, which is a 10.6 per cent boost over the same period in 2015. By comparison, the car market has risen only 3.8 per cent.

The brand has also taken its market share to 4.0 per cent from 3.8 per cent last year.

“We had a record result last year with 43,500 sales,” Mr Senior said. “We are confident we can build on that this year.”

By Neil Dowling

Subaru Levorg