Toyota and Subaru are set to deepen their partnership in the electric vehicle (EV) market with plans to launch a new jointly-developed electric SUV in 2026, which signifies a continued commitment to electrification as they aim to strengthen their position in the global EV market.

According to Nikkei Asia, the upcoming electric SUV, aimed for a January 2026 launch, will target North America, Europe, and Japan. Production is planned at Subaru’s Yajima plant in Japan’s Gunma prefecture, with an estimated capacity of 15,000 to 20,000 vehicles per month.

Moreover, this new model will be the second collaborative EV effort from Toyota and Subaru, following the bZ4X and Solterra models launched in May 2022. To optimize development and reduce costs, the new SUV is expected to share some components with its predecessors.

This announcement aligns with Subaru’s May statement revealing plans to launch three new electric SUVs by 2026 in partnership with Toyota. Subaru CEO Atsushi Osaki emphasized the importance of collaboration, stating, “There is a huge risk for us to go it alone in this field.”

The expanded partnership reflects both companies’ revised EV strategies, with Subaru aiming for 50% of its global sales (around 600,000 units) to be all-EVS by 2030, up from its previous 40% hybrid and EV target. While specific targets were not mentioned for Toyota, the company is adjusting its EV production plans, including delaying the production of a three-row electric SUV in Kentucky to the first half of 2026.

The current performance of Toyota and Subaru’s existing EVs in the U.S. market provides context for this new collaboration. Through September 2023, the Toyota bZ4X sold 13,577 units, while the Subaru Solterra moved 9,137 units.

Furthermore, Toyota and Subaru are reportedly working on two additional electric crossovers beyond the newly announced 2026 model. This aligns with Subaru’s accelerated EV plan, which includes introducing four new battery-electric models by the end of 2028, with at least one to be built in the U.S.

Read More: Toyota Pushes Back Electric SUV Production Start Date To 2026 Amid Market Uncertainties

As both Toyota and Subaru navigate the evolving EV landscape, their continued collaboration underscores the importance of partnerships in addressing the challenges and opportunities presented by the transition to electric mobility.

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