- Subaru’s lineup will expand with 3 new EVs by 2026, and 4 more by 2028
- First 3 new EVs will be developed by Toyota to reduce R&D costs amid EV slowdown
- Subaru will also build next-gen e-Boxer hybrid powertrain in the fall of 2024
Subaru confirmed that a trio of fully electric SUVs is coming by 2026 developed with the help of Toyota, as the company wants to minimize risks in an uncertain EV market. Subaru also announced its yearly financial results, recording a 75 percent increase in its operating profit and a 15 percent increase in global sales.
The Solterra, currently the only EV offered by Subaru, accounted for only 0.02 percent of the automaker’s global sales in 2023. The Japanese automaker hopes that expanding its electric lineup with more SUVs will help reach its ambitious long-term goal of a 50 percent EV sales mix.
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More specifically, Subaru will roll out three new electric SUVs by the end of 2026, and another four by the end of 2028. In order to save R&D costs, the first three new EVs will be developed by Toyota, as with the Subaru Solterra which is a twin to the Toyota bZ4x. The second wave of EVs could be developed in-house by Subaru, although this depends on future EV demand.
One of the three upcoming SUVs set to arrive by 2026 will be manufactured in Subaru’s Yajima plant in Japan. Another one will be produced in the US by Toyota, allowing it to qualify for federal EV tax credits. The US-built model could be the rumored three-row electric crossover expected to enter production in Kentucky in 2025, wearing both the Toyota and the Subaru badges.
The four fully electric SUVs planned by Subaru until 2026
Subaru CEO Atsushi Osaki said to Automotive News: “Through this approach of joint development, joint production and joint supply, we will ensure flexibility in the areas of development and production while mitigating risks with Toyota Motor Corp. at a time when it is difficult to clearly predict future trends.”
Subaru also announced that the next generation e-Boxer hybrid powertrain will enter production in the fall of 2024 in Japan, followed by the US in 2026. Osaki said: “While we have steered toward EVs, we find it important to sell internal combustion products at the same time. So, we already have plans to expand our hybrid product lineup.”
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The Subaru Forester recorded a 60 percent sales increase in the US (48,546 units) in the first quarter of 2024. This prompted the company to add more production capacity for the SUV in its Indiana plant, following the death of the Legacy sedan.
Significantly Higher Profits, Boosted Sales
Subaru’s financial results for the fiscal year between March 2023 and March 2024 were quite positive. The operating profit recorded a 75 percent increase compared to last year, at 468.2 billion yen ($3.09 billion), the highest since 2016. The net income of 385.1 billion yen ($2.55 billion) has nearly doubled, while the revenue of 4.70 trillion yen ($31.06 billion) represents a 25 percent increase.
Subaru Forester
Subaru delivered 976,000 vehicles in the past 12 months, 15 percent up compared to last year. This includes 695,000 sales in the US (+17%), and 27,000 sales (+17%) in Europe. Besides the increased sales volume, the automaker also benefited from a sales mix with more profitable models.
Another decisive factor in boosting Subaru’s profits was the foreign exchange rates, as the Japanese yen lost 14 percent of its value against the US dollar. The automaker is highly dependent on exports, which became more profitable with the yen’s implosion.
For the next fiscal year, Subaru forecasts 980,000 global sales (+1%), including 700,000 units in the US and 15,000 units in Europe. However, the operating profit is expected to decline by 15 percent, and the net income by 22 percent as the Japanese yen recovers and more money is invested in R&D.
