Subaru Outlines Sustainable Growth Plans, Focuses on Energy and Data Mobility

Subaru outlines plans for sustainable growth, focusing on energy and data mobility, and teams up with Toyota to develop three new all-electric crossovers by 2026. The company aims to roll out four full electric crossovers by 2026 and add four more by 2028, with joint production and supply with Toyota.

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Aqsa Younas Rana
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Subaru Outlines Sustainable Growth Plans, Focuses on Energy and Data Mobility

Subaru Outlines Sustainable Growth Plans, Focuses on Energy and Data Mobility

Japanese automaker Subaru has outlined its plans for sustainable growth and transformation into a mobility company, focusing on increasing energy and data mobility in the current fiscal year 2024. The company aims to minimize its risk in the electric vehicle (EV) market, which is cooling off but still requires massive investment in new technology.

Why this matters: As the automotive industry shifts towards electrification, Subaru's strategicpartnership with Toyota highlights the importance of collaboration in mitigating risks and staying competitive in a rapidly changing market. The success of their joint efforts could have a ripple effect on the industry, influencing the pace of electrification and the development of sustainable mobility solutions.

As part of its electrification plans, Subaru will team up with Toyota to develop three new all-electric crossovers by 2026. The company will also deploy its next-generation hybrid system to its Crosstrek crossover and Forester models, with localized U.S. production of the hybrid system starting around 2026. Subaru plans to add production of both the hybrid Forester and traditional gasoline version to its Indiana factory.

CEO Atsushi Osaki acknowledged the challenges in predicting the future of the EV market, stating, "It is quite difficult to predict how things will go from here with EVs." He emphasized the benefits of partnering with Toyota, saying, "We have held talks with Toyota and have agreed that it is better to reduce risks through joint development." Osaki further explained, "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."

Subaru's financial performance has been strong, with operating profit surging 75% to 468.2 billion yen ($3.09 billion) and net income nearly doubling to 385.1 billion yen ($2.55 billion) in the 12-month period ended March 31. Revenue advanced 25% to 4.70 trillion yen ($31.06 billion), and total wholesale deliveries increased 15% to 976,000 vehicles.

Subaru plans to roll out four full electric crossovers by the end of 2026, including the existing Solterra, and aims to add four more EVs by the end of 2028. All four EVs in the first wave, including the Solterra, will be jointly developed and produced with Toyota. The company forecasts selling 400,000 EVs globally in 2028, but this is still under study and hinges on actual market demand.

Under the production plans, Subaru will manufacture one EV at its Yajima plant in Japan for joint supply to both companies, while Toyota will manufacture one EV in the U.S. for joint supply. Toyota is expected to build a new three-row electric crossover in 2025 in Kentucky for Subaru.

Subaru's sustainable growth and transformation plans demonstrate the company's commitment to navigating the evolving automotive landscape while mitigating risks through strategic partnerships. As the company focuses on increasing energy and data mobility, its collaboration with Toyota is expected to play a crucial role in its electrification efforts and future success in the EV market.

Key Takeaways

  • Subaru outlines plans for sustainable growth and transformation into a mobility company.
  • Partners with Toyota to develop 3 new all-electric crossovers by 2026.
  • Will deploy next-gen hybrid system to Crosstrek and Forester models.
  • Aims to sell 400,000 EVs globally in 2028, pending market demand.
  • Collaboration with Toyota to mitigate risks in the EV market.