Subaru going electric

Subaru is considering electric versions of its existing models for the carmaker’s first foray into the technology.

It aims to bring a plug-in hybrid model to market next year and an all-electric vehicle by 2021.

Subaru is joining other car makers in pouring money into battery-powered vehicles amid tightening emissions rules, Bloomberg reports.

The Japanese company, which plans to make record investments in research and development this financial year, is weighing installing electric powertrains in current models rather than designing an all-new car, chief executive officer Yasuyuki Yoshinaga says. The move would allow Subaru to capitalise on its reputation for safety while eliminating the need to partner with another automaker.

Such a strategy contrasts with that of other manufacturers like Daimler AG’s Mercedes-Benz. The luxury-car maker has bundled its electric-vehicle technology, including charging boxes and energy storage, under the EQ sub-brand, giving it more visibility to better compete with Tesla.

Yoshinaga sees advantages in sticking with a single nameplate.

“If there’s already an attractive Subaru model, for example the XV crossover, and if a customer in Beijing wants one but is only allowed to buy an electric vehicle, if there’s no electric version then he can’t buy it,” he says. “Providing the choice of an EV means the customer can still desire the same Subaru.”

The company is budgeting 134 billion yen (NZ$1.7b) on research and development in the 12 months through March 2018, more than double what it spent in the year ended March 2014.

Toyota Motor Corp., which owns a 16.9% stake in Subaru, plans to spend 1.05 trillion yen (NZ$1.35t) on research and development this financial year and Honda Motor Co. will invest 750 billion yen (NZ$9.6b).

Toyota aims to introduce a global electric vehicle model and Honda has said it plans to set up a joint venture with Hitachi Automotive Systems to develop and produce motors for electric cars.