Subaru will reportedly produce new electric models and launch them by the end of 2026 as it aims to accelerate its electrification initiatives, Automotive News Europe reports.
The newly appointed CEO, Atsushi Osaki, has started implementing several commendable reforms that may soon be advantageous to US consumers and the ecological system.
On Thursday, Osaki disclosed the new electrification strategy as the company reported an almost tripled operating profit for the fiscal year that ended on March 31.
“As positive factors such as the effects of foreign exchange rates and sales volume growth more than offset the negative effects of material cost increases and higher SG&A expenses, operating profit rose 177.0 billion yen to 267.5 billion yen, profit before tax grew 171.4 billion yen to 278.4 billion yen, and profit for the period attributable to owners of parent increased 130.4 billion yen to 200.4 billion yen.”
Subaru
Subaru plans to produce 400,000 EVs annually by 2028
As mentioned, the EV latecomer Subaru enjoyed almost tripled operating profits for the 2023 fiscal year ending on March 31, compared to last year. It is worth noting that this remarkable financial result is significantly driven by its key market, the United States.
Now, the Japanese automaker aims to produce and sell 400,000 EVs annually by 2028. To achieve that, the company announced plans to develop a second EV-dedicated production line at its Oizumi plant in Japan by 2027. It will have an annual production capacity of 200,000 units, which will complement the 200,000-unit production capacity of the company’s other production line near the Yajima plant from around 2026.
Apart from that, Subaru also aims to have EVs account for 40% of its global sales by the end of the decade.
In essence, Subaru will produce four battery-electric crossovers by the end of 2026. CEO Osaki noted that these EVs would launch in the US market.
However, CEO Osaki also disclosed that the planned EVs will undergo production in Japan. That said, they would not be eligible for federal tax credits of up to $7,500. Rather, the automaker aims to rely on lease incentives and “brand loyalty.”
“I wonder if American consumers choose their cars solely based on tax breaks. Our US customers are quality customers. We have a higher ratio of customers buying Subarus with cash, and we also have low loan and lease rates. We also keep our incentives at low levels. We will try not to rely only on the subsidy program.”
Tomomi Nakamura, outgoing Subaru CEO
See Also:
- Another delay for Subaru Australia’s first electric vehicle
- Subaru plans to build its first electric vehicle factory
- Tesla to launch three new EVs as part of its Master Plan Part 3
- Mitsubishi Motors unveils new EV business plan
- Toyota plans to start US electric vehicle production by 2025, as per a report
Subaru intends to source the necessary electric vehicle batteries from its partner Toyota, with plans to have an all-electric lineup by the “early 2030s.”
