The Japanese company hopes to increase sales to 10,000 units in 2004 and to 15,000 units within three years.
Subaru will expand its model range to help reach the target.
By the end of 2005 the R2, a car smaller than the Subaru Justy, will be available on the German market.
The R2 will have its European premiere at the Geneva auto show in March.
Currently Fuji Heavy engineers are checking if the R2 complies with European crash regulations.
By the end of 2006 a crossover model will become the company's new flagship.
This off-road sedan with seven seats could be launched first in the US market in 2005.
The Scrambler, a roadster that was introduced at the 2003 motor show in Tokyo, is also on the production list of Suburu's parent company Fuji Heavy Industries.
Subaru also is looking for new dealers in Germany.
In 2004 the German sales network should grow to a total of 400 showrooms. Currently Subaru works with 189 authorized dealers and 169 service partners at 382 locations.
Subaru chiefs hope to open showrooms soon in cities where it currently has no branches including Kiel, Cologne, Munich and Stuttgart.
Further gaps in Subaru's sales network are Aachen, Berlin, Duesseldorf, Essen, Frankfurt, Freiburg, Hamburg, Muenster, Nuremberg, Oldenburg, Osnabrueck and Schwerin.
The company hopes that the Subaru Forester will be the most successful model in 2004. The sales target is 2,900 units.
Subaru hopes to sell 2,150 Imprezas, 2,150 Justys, 2,000 units of the Legacy and 800 of the new Outback.