Subaru Is Building A Dedicated EV Plant In Japan
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Subaru is another Japanese automotive player which is suddenly turning turtle and announcing massive investments in electric powertrains. It has announced plans to build a dedicated EV assembly plant in 2027 as a part of a multi-billion dollar investment toward electrification in the next 5 years. Its CEO Tomomi Nakamura has outlined a plan which was announced on May 12 when it announced its earnings.
Its 2023 Solterra EV will be made at Toyota’s Motomachi assembly plant in Japan which is the same plant where Toyota is making its first EV the bZ4X. But in the future, the plan for Subaru is to make its EVs in-house.
Nakamura has said that initially, Subaru will make its EVs in a mixed production scenario with internal combustion engine vehicles in its Yajima plant in Japan in the mid-2020s. But from 2027, the EVs will be made at a dedicated factory on the site of the Oizumi plant which is currently making engines and transmissions.
“Two or three years ago, U.S. retailers were not asking about EVs at all. But in this last year, it’s suddenly increased,” said Nakamura indicating that this transformation is being driven by the US market.
Subaru has announced an investment of $2.05 billion. It expects 40 per cent of its global sales to come from EVs and hybrids by 2030. The Solterra EV will be the first model which starts at $44,995 in the US and will also be eligible for the $7,500 tax credit and other state incentives.
Questions & Answers
Q.When will Subaru's dedicated EV plant begin operations?
When will Subaru's dedicated EV plant begin operations?
Subaru plans for its dedicated EV assembly plant to begin operations in 2027. This facility will be located on the site of the Oizumi plant, which currently manufactures engines and transmissions.
Q.What is driving Subaru's increased investment in electric vehicles?
What is driving Subaru's increased investment in electric vehicles?
The transformation towards electrification is largely being driven by demand from the US market. CEO Tomomi Nakamura noted a sudden increase in retailer inquiries about EVs in the last year, compared to previous years.
Q.Where will Subaru's first EV model, the Solterra, be manufactured?
Where will Subaru's first EV model, the Solterra, be manufactured?
The 2023 Solterra EV will be made at Toyota’s Motomachi assembly plant in Japan. This is the same facility where Toyota produces its own first EV model, the bZ4X.
Q.What percentage of its global sales does Subaru expect from EVs and hybrids by 2030?
What percentage of its global sales does Subaru expect from EVs and hybrids by 2030?
Subaru expects that 40 per cent of its global sales will come from electric vehicles and hybrids by the year 2030. This is part of a multi-billion dollar investment plan over the next five years.
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