It's the second time one of the brand's models has received the award in its home country, with the other title won by the Liberty (known in Japan and the US as the Legacy) in 2003.
Subaru says the new Impreza has out-performed its monthly sales target in Japan by more than four times originally forecast in its first month on sales - with 11,500 orders easily eclipsing the company's monthly sales target of 2500.
“It is a great honour that the Impreza has been recognized with this distinctive award,” said Yasuyuki Yoshinaga, President and CEO of Fuji Heavy Industries, Subaru's parent company (which will soon rebrand to Subaru).
The new Impreza is the first model from Subaru to use the company's all-new modular platform that will eventually form the basis of pretty much every one of its future models.
Starting from $22,400 plus on-road costs in Australia, the first deliveries of the new small hatch and sedan will arrive Down Under this month, and are exclusively equipped with a continuously-variable transmission (CVT).
Powering all variants is a 115kW/196Nm 2.0-litre 'boxer' four cylinder petrol engine.
For more information on the 2017 Subaru Impreza, check out our pricing and specs article here.
Meanwhile, the Honda NSX hybrid supercar was awarded the 'Special Award' by the Car of the Year Japan's Steering Committee.
The Car of the Year Japan Steering Committee’s Special Award is an award established separately to recognise cars, special-needs vehicles, initiatives and events that contributed to the evolution of mobility or individuals who contributed to the industry, which have made a special impact.
"NSX demonstrated a high degree of perfection as a high-performance hybrid super sports car. It has a profound significance that NSX proposed the future image of sports cars with hybrid technologies, which is one of Japan’s strengths," the group said.
"Due to the fact that the annual sales plan for NSX is 100 units, which is less than the 500-unit-standard for nomination for the Car of the Year Japan, we decided to keep this model on our records by awarding it the Steering Committee’s Special Award."
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