The EV plant is planned to be built sometime in 2027 and has an investment of around $1.9 billion.
On Thursday, Japanese automaker Subaru announced that it will build an EV-dedicated plant in Japan in response to the demand for electric cars in its main North American market. The automaker will invest $1.9 billion (250 billion yen) into the project.
Subaru plans to launch a mixed-line production of gasoline and electric vehicles around 2025 before opening the EV-only production line after 2027. The facility will be located near Subaru’s main factory and other facilities in Ota, Gunma Prefecture.
Subaru is the first Japanese automaker to make this move. Other Japanese automakers haven’t made announcements on making an EV-dedicated factory.
Automakers are accelerating their EV productions to catch up with the growing industry, specifically with Tesla which is the current leader in the EV segment.
“The market for EVs has been changing very rapidly over the past year,” said Subaru CEO Tomomi Nakamura. –according to Reuters.
The announcement was made after Subaru accepted orders for the mass production of its first EV, Solterra, which was jointly made with Toyota. Solterra’s production was also outsourced to Toyota as Subaru doesn’t produce its own EVs yet.
Additionally, Subaru aims to increase the ratio of its EVs by 2030. “By 2030, we will pursue our goal of increasing the ratio of electric vehicles (EV) and hybrid cars to at least 40% of the gross number of vehicles sold globally. In the early 2030s, all commercial SUBARU cars will be equipped with electric powertrain technology.” It said in its 2021 Sustainability Report.
