According to media reports, Subaru and Toyota are strengthening their collaboration, with plans to jointly produce three new electric crossover vehicles. Subaru stated that partnering with Toyota will help minimize the "significant risks" of producing electric vehicles alone.
Subaru CEO Atsushi Osaki stated during a meeting on May 13th, "In this field, exploring alone would entail significant risks."
Osaki explained, "Currently, it's difficult to predict how electric vehicles will evolve in the future." Last year, Subaru sold only 14,000 electric vehicles, with 8,872 units sold in the U.S. market. In 2023, Subaru delivered 852,000 vehicles globally, with electric cars accounting for only 1.6%. So far, the company has only released one all-electric vehicle, the Solterra.
With Subaru's declining electric vehicle sales in the United States, the company has announced a new strategy to reverse the situation. Osaki, who became Subaru's CEO in April last year, aims to achieve a 50% share of electric vehicles in the total sales by 2030, roughly around 600,000 units. Although this target is still relatively low, compared to the previous goal of hybrid and electric vehicles comprising 40% of sales, it represents a significant increase.
As per the plan, Subaru will have four all-electric SUVs by the end of 2026, including the Solterra. By the end of 2028, Subaru will introduce four more electric vehicles, totaling eight models.
Osaki mentioned that Subaru will collaborate with Toyota to develop and produce three new electric vehicle models. With Toyota holding a 20% stake in Subaru, the partnership will help the smaller Japanese automaker minimize risks during its transition to electric vehicles. Osaki explained, "We have had discussions with Toyota and agree that reducing risks through joint development is the better approach."
Subaru will produce one of the three new electric vehicle models at its Yajima factory in Japan, supplying it to both Toyota and Subaru. Toyota will produce one electric vehicle in the United States, supplying it to both companies.
Toyota plans to produce Subaru's first three-row electric SUV in Kentucky by 2025. Subaru plans to start domestic production of electric vehicles in Japan from 2025, with an annual capacity of about 200,000 units. Subaru will add an electric vehicle-specific production line in 2027, increasing its output by another 200,000 units.
Osaki also stated, "Due to significant market changes, we will continue to move forward while carefully studying the situation." As Toyota will produce these vehicles domestically in the United States, Subaru will benefit from federal EV tax credits, which will help stimulate demand.
Subaru also revealed plans to expand its hybrid vehicle lineup. Osaki stated, "While we are transitioning to electric vehicles, we believe it's important to continue selling internal combustion engine vehicles simultaneously."
