Monday, October 2, 2023
News Subaru Unveils Ambitious Electrification Strategy, Doubling Current EV Lineup

Subaru Unveils Ambitious Electrification Strategy, Doubling Current EV Lineup

Subaru’s CEO announces an accelerated electrification plan, aiming to build EVs in the U.S. by 2027 and achieve significant global EV sales by 2030.


  • Subaru accelerates EV plans, aims for 400k U.S. sales by 2028.

  • Subaru targets 50% global volume from EVs by 2030.

  • The manufacturer aims to expand lineup to eight EV models.


Subaru, nowadays recognized for its late entry into the electric vehicle (EV) market, is stepping up its electrification efforts with a bold new strategy. The company’s CEO, Atsushi Osaki, recently revealed ambitious plans during the quarterly financial results briefing. These plans include building EVs in the U.S. by approximately 2027 and targeting sales of around 400,000 battery-powered cars in the U.S. by 2028, a volume amounting to almost half of Subaru’s current U.S. sales.

Subaru Solterra
Subaru Solterra | Photo: Louis-Philippe Dube

In addition to the U.S. goals, Subaru aims to derive 50% of its global volume, estimated at 600,000 units, from full-electric models by 2030. Osaki envisions achieving worldwide sales of 1.2 million electric vehicles in the same year.

Subaru Solterra | Photo: Louis-Philippe Dube

This new EV strategy represents a significant acceleration compared to Subaru’s previous plan. The company had initially targeted global EV sales of 400,000 units annually by 2028 through the addition of a second production line in Japan. However, the shift in consumer demand for EVs has outpaced expectations, especially in Europe, where EV sales surged by 45% to 853,720 units during the first half of the year.

Subaru Solterra | Photo: Louis-Philippe Dube

To achieve its electrification objectives, Subaru plans to commence in-house EV production in Japan around 2025, starting with a production line capable of manufacturing approximately 200,000 units per year. Another dedicated EV production line is planned for Japan around 2027, adding an additional capacity of 200,000 EVs.

2023 Subaru Solterra teaser
2023 Subaru Solterra teaser | Photo: Subaru

Simultaneously, Subaru is looking to initiate localized EV production in the U.S. by 2027 to 2028, taking into account battery procurement and supply chain logistics. The company is in talks with Panasonic Corp., a major supplier for Tesla, to form a partnership to supply Subaru with next-generation cylindrical lithium-ion batteries for its EVs.

2023 Subaru Solterra | Photo: Subaru

While Subaru previously unveiled plans to introduce four full-electric crossovers by the end of 2026, including the existing Solterra model co-developed with Toyota, the company now intends to expand its EV lineup to eight models by the end of 2028. The upcoming models are expected to offer more diverse body types beyond crossovers.

The Subaru Solterra will Start at $54,295 in Canada

To ensure profitability in its EV endeavors, Subaru is targeting a 50% reduction in product development and lead time, production process, and manufacturing time by around 2028.

Subaru’s electrification vision comes as the company announces robust profits in the fiscal first quarter, with significant increases in operating profit, net income, and global wholesale deliveries. The company aims to continue its strong performance and drive its electrification goals forward in the coming years.

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