Subaru has planned to spend JPY250bn to build an electric vehicle factory in Japan and in-house (EV) battery manufacturing capacity over the next five years. 

The move is part of a multi-billion-dollar investment in electrification, to step up the pace in the battery-car race.  

The Japanese automaker plans to build a new EV production line at its main assembly plant in Gunmna prefecture at a cost of JPY100bn. It is said to be scheduled for completion in 2027.  

Only this year did Subaru announce its first serious contender, the Solterra Crossover EV, which shows the all-four wheeled drive specialist, is finally turning its head to fully electric vehicles. 

Unlike their competitors, Japanese automakers fall behind in the transition to electric vehicles, with their EV sales accounting for less than 1% of total vehicle sales last year.  

Sabaru has set itself a sales target of 40% by 2030. Other Japanese automakers such as Honda, Toyota and Nissan have also aimed to step up their EV investments worldwide.  

The EVs made will be exported globally to markets including the U.S. the automotive company will begin making its own EV’s in mixed production with internal combustion vehicles at its Yajima plant in Japan within the next few years, until the plant is completed.  

Subaru CEO Tomomi Nakamura outlined plans early this week while announcing fiscal earnings. He highlighted that Subura is still contemplating what kind of segment or models the upcoming EVs will be. He added that the alliance with Toyota will also be beneficial to “build up technology and know-how” in EVs.