Subaru plans to collaborate with Toyota to launch three all-electric crossovers by 2026. Subaru aims to reduce risks in the electric vehicle market, which is experiencing a slowdown but still requires significant investments in new technology.
During the announcement of a 75% increase in operating profit for the fiscal year, CEO Atsushi Osaki stated, “It is very difficult to predict how things will go with electric vehicles right now.” He added, “We have had discussions with Toyota and agreed that it is better to reduce risks through joint development.” Osaki expressed hesitation about Subaru's potential plans to produce its own electric vehicles in the United States.
Osaki added, “I didn’t say we would produce electric vehicles at our own factory in the U.S.” He continued, “With the market changing dramatically, we will continue to study the situation closely.” To enter the electric vehicle market, Subaru will start with the next-generation hybrid version of the Crosstrek crossover in addition to the Forester. Subaru will also increase the production of both the hybrid Forester and the traditional gasoline version at its Indiana factory, and they will also be manufactured at the main production center in Japan.
The sales of the Forester in the U.S. rose by 60% to 48,546 units in the first quarter from January to March. Local production in the U.S. for the next generation of hybrid systems is expected to start around 2026. Subaru currently imports the Forester from Japan, but announced in April that it will end U.S. production of the Legacy sedan after the 2025 model, making room for the Forester.
Osaki stated that due to the uncertainty regarding demand for electric vehicles in the U.S., collaborating with partners is wise. He said, “With this approach to joint development and joint production, we will ensure flexibility in development and production areas while mitigating risks with Toyota at a time when it is difficult to clearly predict future trends.” He added, “While we are moving toward electric vehicles, we find it important to sell internal combustion products at the same time. Hence, we already have plans to expand our hybrid product lineup.”
Despite the recent decline in electric vehicle sales growth in the U.S. market, Osaki expressed commitment to Subaru's long-term goal of increasing the number of electric models worldwide. He had previously envisioned total sales of 1.2 million vehicles that year.
Subaru sold only 14,000 electric vehicles worldwide in 2023, including 8,872 in the U.S., out of a total of 852,000 vehicles delivered globally. Subaru plans to launch four all-electric crossovers by the end of 2026, including the current Solterra model, which is a stable companion to Toyota's bZ4X electric vehicle. After that, Subaru plans to add four more electric vehicles by the end of 2028.
