Subaru’s entry into the electric vehicle market represents a significant shift for the Japanese automaker, known for its all-wheel-drive vehicles and boxer engines. As of 2024, Subaru has taken its first steps into electrification with the introduction of its first all-electric vehicle, developed in partnership with Toyota. The company aims to electrify its lineup to meet growing consumer demand and stringent environmental regulations.
| Subaru | |
| Founded: | July 15, 1953 |
| Founders: | Kenji Kita |
| Employees | 14,234 (as of March 31, 2023) |
| Headquarters: | Shinjuku, Tokyo, Japan |
| Manufacturing (Electric Vehicles): | Shinjuku, Tokyo, Japan |
| IPO: | 1955 (Tokyo Stock Exchange) |
| EV Models: | Solterra |
| Federal Tax Credit Eligibility: | Not applicable |
Subaru’s Vision and Mission
Subaru aims to maintain its reputation for rugged, reliable vehicles while transitioning to more sustainable powertrains. The company’s mission is to provide environmentally friendly vehicles that still embody the Subaru ethos of adventure, safety, and performance.
The Evolution of Subaru: From All-Wheel Drive to Electric Power
Subaru has a history dating back to 1953 when it was established as the automotive division of Fuji Heavy Industries. The company gained fame for its boxer engines and symmetrical all-wheel-drive systems, which became standard on most Subaru vehicles. Popular models like the Outback, Forester, and WRX have cultivated a loyal following among outdoor enthusiasts and performance car fans alike.
As the automotive industry shifts towards electrification, Subaru has partnered with Toyota to develop its first all-electric vehicle. The Solterra, launched in 2022, marks Subaru’s entry into the EV market. This collaboration allows Subaru to leverage Toyota’s electric vehicle expertise while maintaining its own brand identity and all-wheel-drive heritage.
Subaru plans to invest approximately 250 billion yen ($2.05 billion USD) in electrification efforts over the next five years. The company aims to have at least 40% of its global sales coming from electric vehicles or hybrids by 2030. This strategy demonstrates Subaru’s commitment to electrification while preserving the core values that have made the brand successful.
Subaru’s Current Electric Vehicle Lineup
Subaru Solterra
The 2024 Subaru Solterra is the brand’s first all-electric vehicle, developed in partnership with Toyota. It combines Subaru’s expertise in all-wheel drive systems with Toyota’s electric powertrain technology. Key features of the Solterra include:
- Dual-motor all-wheel drive system (standard)
- 215 horsepower and 249 lb-ft of torque
- EPA-estimated range of up to 228 miles (Premium trim)
- DC fast-charging capability, adding up to 80% charge in about 56 minutes
- 8.3 inches of ground clearance
- Subaru EyeSight driver assist technology
- Available 12.3-inch touchscreen infotainment system
The Solterra is offered in three trim levels: Premium, Limited, and Touring. Pricing starts at $44,995 for the Premium trim and goes up to $51,995 for the Touring trim (excluding destination charges).
Electric Design and Engineering
The Solterra is built on the e-SUBARU Global Platform, jointly developed with Toyota. This dedicated EV platform allows for a low center of gravity and high rigidity, contributing to the vehicle’s handling and safety. Subaru has adapted its signature Symmetrical All-Wheel Drive system for electric propulsion, maintaining the brand’s reputation for excellent traction and off-road capability.
Subaru is leveraging its partnership with Toyota to accelerate its EV development. While the company doesn’t currently produce its own batteries, it benefits from Toyota’s expertise in this area. Future Subaru EVs are expected to feature improved range and charging capabilities as the technology advances.
Brand Highlights and Differentiators
All-Wheel Drive: Subaru brings its expertise in all-wheel drive systems to the EV market, offering standard AWD on the Solterra.
Safety: The brand continues its focus on safety with the inclusion of the EyeSight driver assist technology in its EV offerings.
Outdoor Lifestyle: Subaru maintains its appeal to outdoor enthusiasts with the Solterra’s ground clearance and off-road capabilities.
Strategic Partnerships
Subaru’s primary strategic partnership for EVs is with Toyota. This collaboration allows Subaru to:
- Accelerate its entry into the EV market
- Access Toyota’s electric vehicle technology and expertise
- Share development costs for new EV platforms
Manufacturing and Market Strategy
Currently, the Solterra is manufactured in Japan. However, Subaru has announced plans to produce electric vehicles at its plant in Lafayette, Indiana, starting in 2027. This move will support the company’s goal of electrifying its US-market models and potentially qualify for additional federal EV tax credits.
Subaru’s EV strategy focuses on maintaining its core customer base of outdoor enthusiasts and safety-conscious buyers while attracting new customers interested in electric vehicles. The Solterra serves as an entry point for loyal Subaru customers looking to transition to an EV without sacrificing the brand’s signature features.
Challenges and Opportunities
As Subaru navigates the electric transition, it faces several challenges and opportunities in promoting Subaru electric vehicles:
Challenges:
- Limited EV experience compared to some competitors
- Balancing EV development with continued production of popular gasoline models
- Expanding charging infrastructure, particularly for adventure-oriented customers
Opportunities:
- Leveraging strong brand loyalty to transition customers to EVs
- Expanding market share in regions with strong EV adoption
- Developing unique EV features that align with Subaru’s outdoor and performance image
Electric Driver Conclusion: Subaru Electric Vehicles
Subaru’s entry into the electric vehicle market with the Solterra demonstrates the company’s commitment to electrification while maintaining its core brand values. By partnering with Toyota and focusing on all-wheel drive capability, Subaru aims to offer EVs that appeal to its traditional customer base and attract new environmentally conscious buyers. As Subaru continues to develop its electric lineup and invest in US production, it is positioning itself to be a significant player in the EV transition, particularly in the all-wheel drive and crossover segments.