Subaru's next big idea might be a very small electric car

25 July 2025

Subaru, known for its rugged, all-wheel-drive wagons and crossovers, is exploring a new frontier: the tiny electric car. Fresh off the launch of a couple of new electric vehicles, the Japanese automaker is now reportedly considering an even smaller, more affordable model for its future lineup.

The company's interest seems to be sparked by European trends, where small and stylish electric cars are gaining serious traction. A prime example is the new Renault 5, an all-electric hatchback that has already racked up an impressive 30,000 sales since its debut earlier this year.

According to Masahiko Inoue, Subaru's global head of EV products, the company sees potential in this area. "It's something that is up for consideration," he noted, explaining that Subaru needs "to prepare a wider range of BEVs to meet every customer's expectations." This suggests a shift to diversify its portfolio of electric cars beyond the larger crossovers it has focused on so far.

If this tiny EV comes to life, it will almost certainly be born from Subaru's deep partnership with Toyota. The two companies have a long history of collaboration, and all of Subaru's electric cars, including the Solterra and the just-unveiled Uncharted, were co-developed.

This strategy allows both brands to share the enormous costs of developing new electric platforms. The perfect foundation for a small Subaru EV might already be in Toyota's playbook. Andrea Carlucci, Toyota's product boss in Europe, has previously stated that an electric version of the popular Yaris compact "is the idea," providing a ready-made platform for a Subaru sibling.

Subaru's current entry-level EV, the Uncharted crossover, is already a fairly compact vehicle. It is about 7 inches shorter than the Subaru Solterra, which is similar in length to the familiar gasoline-powered Impreza hatchback. A new, smaller model would shrink things down even further, potentially putting it in the same class as the Subaru Justy, a tiny hatchback from the late '80s.

Subaru isn't rushing yet to get a mini-EV into showrooms. Executives want to see first how the market receives their newest offering, the Uncharted. David Dello Stritto, the head of Subaru Europe, indicated that the company is happy to observe for now. "I reckon we need about two years to find out how it's performing," he said. This two-year window will give Subaru valuable data on customer preferences and allow it to watch how the small EV segment develops.

A small, affordable EV might be a hit in Europe's city-dense environments, but its success in the United States is less certain. American buyers have consistently shown a preference for larger vehicles, and even a lower price point might not be enough to convince them to go small.

Via