Is Subaru Planning a Comeback in the Small Electric Car Market?
If you’ve been keeping an eye on the electric vehicle (EV) scene, you might have noticed a quiet revolution happening in the world of compact cars. With the success of models like the new Renault 5, it’s no wonder that Subaru—a brand best known for its rugged all-wheel-drive vehicles—is considering a return to the B-segment with an affordable electric hatchback. But what’s really driving this potential move, and what could it mean for drivers who want a practical, eco-friendly car without breaking the bank?
Why Is Subaru Eyeing the Small Electric Hatchback Segment Now?
Let’s be honest: the European car market is changing fast. Affordable, city-friendly EVs are having a moment, especially as urban drivers look for ways to cut emissions and running costs. The Renault 5’s impressive 30,000 sales in Europe since its recent launch have sent a clear message—there’s real demand for stylish, affordable electric hatchbacks.
Subaru’s global EV product boss, Inoue Masahiko, has acknowledged this shift. He’s hinted that the brand is actively considering a model that would sit below their upcoming Uncharted SUV, aiming to broaden Subaru’s EV appeal. It’s not just about following trends; it’s about meeting the evolving expectations of drivers who want more choices in the electric space.
Could Subaru Team Up with Toyota Again for This Project?
If you know Subaru’s recent history, you’ll know they’re no strangers to collaboration. Their Solterra electric SUV shares much of its DNA with Toyota’s bZ4X, and the new Uncharted SUV is based on Toyota’s C-HR+. So, it’s not a stretch to imagine Subaru and Toyota joining forces once more—this time, potentially to create an electric hatchback that could rival the likes of the Renault 5 and the anticipated electric Yaris.
Toyota’s product boss Andrea Carlucci has already floated the idea of an electric Yaris, though he’s made it clear that it’s not arriving just yet. Still, the groundwork is there for a partnership that could bring a small Subaru EV to market by the latter part of this decade.
What Would a New Subaru Electric Hatchback Look Like?
Let’s take a step back and imagine what this car could be. Subaru’s most famous B-segment model was the Justy, a practical and unpretentious hatchback that quietly served drivers from 1987 to 2009. If Subaru revives the Justy name—or creates something entirely new—it’s likely to be a compact, city-friendly EV with a focus on affordability, efficiency, and (knowing Subaru) a dash of all-weather capability.
Given the current market, expect a range of around 250-300 kilometers (155-186 miles) on a single charge, fast-charging capability, and a price point that undercuts larger EVs. Subaru’s reputation for safety and reliability would be a major selling point, especially for younger buyers and urban commuters.
How Does This Fit into Subaru’s Broader Electric Strategy?
Subaru isn’t just thinking about one car—they’re looking at the bigger picture. Their current European EV lineup includes the Solterra SUV, the upcoming Uncharted, and the E-Outback crossover. Adding a smaller, more affordable hatchback would lower the entry point for new customers and help Subaru compete in a segment that’s heating up fast.
But there’s a note of caution here. Subaru Europe boss David Dello Stritto has said the company wants to see how the Uncharted SUV performs before making any big decisions. He’s suggested a two-year window to assess the market and gather feedback. In other words, Subaru isn’t rushing in—they’re watching, learning, and planning carefully.
What’s Driving the Surge in Affordable Electric Hatchbacks?
It’s not just Subaru and Toyota. The entire industry is buzzing with new entries in the affordable EV space. Volkswagen is preparing the ID 2, Cupra has the Raval on the way, and MG is rumored to be launching a sub-£22,000 electric supermini by 2028. According to data from the European Automobile Manufacturers’ Association (ACEA), sales of small electric cars in Europe grew by over 40% in 2023, outpacing larger segments.
This surge is fueled by a mix of stricter emissions regulations, growing consumer interest in sustainability, and the simple reality that not everyone needs or wants a massive SUV. For city dwellers, students, and first-time buyers, a compact EV just makes sense.
What Should Buyers Expect If Subaru Goes Ahead?
If Subaru gives the green light, expect a car that blends the brand’s signature practicality with the latest electric tech. Think nimble handling, a comfortable ride, and a suite of safety features. And if the partnership with Toyota materializes, you can bet on proven battery and drivetrain technology.
The real win for consumers? More choice. As more brands enter the affordable EV market, prices will become more competitive, and features will improve. It’s a win-win for anyone looking to make the switch to electric without stretching their budget.
Looking Ahead: Is the Wait Worth It?
So, should you hold out for a small Subaru EV? If you’re a fan of the brand or just want to see what the next wave of electric hatchbacks has to offer, it might be worth keeping an eye on this space. The next two years will be telling, as Subaru gauges the market and refines its plans.
In the meantime, the growing competition in the affordable electric segment means there’s never been a better time to explore your options. Whether Subaru jumps in or not, the future of small, practical EVs looks brighter—and more exciting—than ever.