Subaru's Electric Vehicle Strategy: Expanding Beyond Current Offerings
Subaru is actively considering the expansion of its electric vehicle portfolio to include a smaller, B-segment model. This strategic move is largely dependent on the commercial triumph of its forthcoming compact electric vehicle, the Uncharted, set to debut next year. The Japanese automaker's current EV offering is limited to the Solterra, but plans are in motion to diversify its electric range with the addition of the midsize Trailseeker.
Subaru's global head of electric cars, Inoue Masahiko, acknowledged the ongoing evaluation for a broader spectrum of battery electric vehicles (BEVs) to cater to diverse consumer preferences. Similarly, David Dello Stritto, Subaru's European chief, expressed openness to introducing a subcompact electric vehicle, especially as the European market anticipates an influx of new models in this category. Competitors like the Renault 5 E-Tech, Volkswagen ID.2, Cupra Raval, MG 2, and even a Dacia Sandero EV are poised to intensify competition within this segment. Smaller A-segment EVs, such as the modernized Renault Twingo EV, its Dacia counterpart, and a new compact Honda EV, are also expected to enter the European market, signaling robust demand for such vehicles on the continent.
The ultimate decision regarding a subcompact EV will be made following a two-year assessment of the Uncharted's market reception. Dello Stritto indicated that this period would allow Subaru to develop new concepts and gauge market viability. Given Subaru's history of leveraging Toyota's platforms for its electric vehicles, a potential B-segment EV would likely follow this pattern, possibly in conjunction with Toyota's rumored electric Yaris project, which is still several years away. Toyota Europe's Director of Marketing and Product Development, Andrea Carlucci, affirmed the concept of an electric Yaris but noted that the timing is not yet optimal for its introduction.
Currently, American consumers exhibit a preference for larger vehicles, making the introduction of B-segment EVs in the U.S. market less likely. The discontinuation of models like the Chevy Bolt EV and EUV, and the BMW i3, along with tariff-related challenges for models like the China-built Mini Cooper J01, underscore this trend. While a new Chevy Bolt EV is anticipated, most manufacturers perceive limited demand for petite city-focused electric cars in the United States. Unless regulatory incentives, similar to Japan's kei car regulations, are implemented to encourage the adoption of smaller vehicles through tax benefits, American consumer preferences for larger cars are expected to persist, impacting Subaru's decision on a U.S. launch for any subcompact EV.
The potential for a B-segment electric vehicle from Subaru represents a cautious yet forward-looking approach to electrification, aligning with evolving market demands, particularly in Europe. The success of the Uncharted will serve as a critical barometer, guiding Subaru's subsequent steps into smaller EV segments and potentially influencing future collaborations with Toyota. The brand’s naming conventions, such as the European E-Outback for the Trailseeker, suggest a strategy to maintain brand familiarity, potentially extending to a “Justy” or “E-Justy” for a subcompact EV, depending on regional market dynamics.