Subaru, a Japanese carmaker, is turning its focus and resources to the production of electric automobiles. Subaru unveiled a new electrification strategy on Wednesday, aiming for eight EV models by 2028 and a 50% share of BEV sales by the end of the decade.
Subaru’s EV strategy has been updated
A day after a story claimed Toyota would begin production of a new three-row Subaru electric SUV in Georgetown, Kentucky, in 2025, Subaru has stepped up to the plate.
Subaru’s president and CEO, Atsushi Osaki, unveiled the new electrification ambitions after the company released its quarterly results on Wednesday.
Osaki radically altered the automaker’s strategy, predicting a 50% BEV market share, or 600,000 unit sales, by 2030. Subaru now plans to sell 400,000 EVs in the United States, its largest market (about 70% of sales), by 2028.
This is a significant shift from Subaru’s previous plans of 40% EV and hybrid share (combined). Subaru now aspires for a 50/50 BEV/HEV mix, rather than 60% ICE sales.
Subaru intends to start in-house EV production in 2025, followed by dedicated EV production lines in 2027. Subaru will commence EV manufacture in the United States around 2027.
Growth will be fueled by a 1.5 trillion yen ($10.4 billion) investment by 2030, including a previously stated 250 billion yen for local production reorganization.
Subaru intends to launch four electric SUVs (including the Solterra) by the end of 2026, followed by four new EV vehicles by the end of 2028, for a total of eight.
The Subaru Solterra, the automaker’s sole EV, is developed by Toyota (who owns 20% of Subaru) and rides on the same e-TNGA platform as the bZ4X electric SUV.
Toyota builds both electric vehicles in Japan at its Motomachi assembly factory. Subaru sold 3,730 Solterra EVs in the United States this year through July, accounting for around 1% of total sales.
Subaru and Panasonic revealed earlier this week that they had began discussions to deliver next-generation cylindrical lithium-ion batteries beginning in the second half of the 2020s. A dedicated EV facility in Gunma, Japan, is among the plans.
Toyota and other Japanese manufacturers have lately revealed similar initiatives to increase competitiveness as the industry transitions to EVs.
Toyota unveiled a slew of new technologies to bolster its EV competitiveness, including a dedicated platform, next-generation batteries that will expand range while lowering prices, design refinements, and manufacturing improvements to improve efficiency.
To prevent falling further behind, the Japanese government is strengthening support for battery technology with 330 billion yen ($2.3 billion) in subsidies. Toyota is expecting to get approximately 120 billion ($847 million) in funding to support its EV battery technology strategy.
Subaru will have a foot in the door thanks to Toyota’s investment in dedicated EV assembly and battery manufacturing facilities. However, Subaru’s position in its largest and most profitable market will be vital in the coming years.