Subaru is going to build EVs from the middle of decade as it fights to compete with the rivals for emission-free cars.
TOKYO – Subaru is an electric vehicle corporation stepping up its step in innovating and building the battery-car by adding a dedicated in-house EV assembly plant around 2027 in Japan. The move is as part of a multibillion-dollar investment in vehicle electrification five years to come.
Subaru’s outlay shows that the specialist of all-wheel drive is finally changing its emphasis on EVs production after the first serious contender, Solterra crossover EV, is introduced this year only. Different from Solterra, the EVs manufactured in the latter half of this decade will be produced by Subaru right away.
The Solterra, that specially shares a Toyota-developed EV platform with the Toyota bZ4X, is produced at Toyota’s Motomachi assembly plant on the similar line as the same nameplate.
Tomomi Nakamura, the Subaru CEO, planned the plans on Thursday while they are also declaring fiscal year earnings. Subaru will start producing its own EVs in the combined production with internal combustion vehicles at its Yajima plant in the middle of 2020 in Japan. In this regards, Subaru will start building its dedicated EV manufacturer on the spot of its Oizumi plant that is now making engines and transmission. This is planned to be done around 2027.
Nakamura said, the EVs will be exported around the world for marketing including the United States. Subaru still expects what segments or styles that the future EVs will have. Nakamura also decayed to offer a manufacturing capacity figure for the new EV manufacturing facility.
Nakamura added that the EVs market has significantly changed last year. Regardless the US dealers are starting to call for battery-electric cars, especially after facing the next Solterra. According to Nakamura, United States retailers were not questioning about EVs at all two or three years ago. However, people started questioning radically about it last year.
Around mid-decade, next-gen hybrid models will also be introduced based on gasoline-electric powertrains given by Toyota that has a 20% stake in Subaru. Subaru will make its own brands on the hybrid offerings e-Boxers.
Subaru will invest 250 billion yen over the five years to come for the hybrid and EVs first models. Subaru wants 40% of its global sales resulted from the hybrids and pure EVs by 2030. And, Subaru plans to produce electric models for all new vehicles for global markets by 2030.
The Solterra went on sale in May 12 in Japan. Later, it will also be marketed in the US, China, Canadan and Europe.
According to Nakamura, the profit operation dropped 12% to 90.5 billion yen which is similar to $742.4 million in the fiscal year ended in March 31. The manufacturer states that the global sales slid 15% to 734,000 vehicles as the manufacturers should fights against the pandemic restrictions and the global semiconductor shortage.
The sales in the US at which Subaru dominated the biggest and most important market dropped 17% to 506,000 units in a year. This is due to the production stoppages were prevented Subaru for giving a hot demand supply.