Subaru Eyes Small Electric Car Segment Following Success of Uncharted and Global EV Trends

Subaru, long known for its rugged all-wheel-drive crossovers and wagons, is now turning its attention to a much smaller electric future. After launching the all-electric Subaru Solterra and the newly unveiled Subaru Uncharted, the Japanese automaker is reportedly exploring the idea of launching a tiny, affordable electric vehicle for urban drivers — especially with European markets in mind.

Subaru Considers Compact EVs as European Demand Surges

The move seems to be inspired by the growing popularity of compact EVs in Europe, such as the Renault 5, which has already surpassed 30,000 sales since its launch earlier this year. Speaking on the matter, Masahiko Inoue, Subaru's global head of EVs, said, "It's something that is up for consideration," emphasizing the brand’s desire to diversify its EV lineup.

Subaru's current EV portfolio includes larger crossovers, but a smaller city-friendly EV would expand its reach significantly — potentially reintroducing a modern-day version of the iconic Subaru Justy.

Toyota Partnership Could Pave the Way

If this compact EV materializes, it will likely leverage Subaru’s close collaboration with Toyota, which co-developed both the Solterra and Uncharted. A Toyota-based electric platform, such as one from the Yaris EV concept, could serve as the foundation for Subaru’s compact offering.

Andrea Carlucci, Toyota’s Europe product chief, has already hinted that an electric Yaris is "the idea," potentially making room for a Subaru-branded sibling EV built on the same architecture.

Market Strategy and Challenges

While the idea is promising, Subaru is in no rush. According to David Dello Stritto, head of Subaru Europe, the company will monitor the Uncharted’s performance over the next two years before committing to a new mini-EV project. This wait-and-see approach will provide data on customer preferences and help assess the evolving demand in Europe’s city-focused EV segment.

However, success in the U.S. market remains uncertain, as American consumers traditionally lean toward larger vehicles. Even with an affordable price tag, a compact Subaru EV might face an uphill battle in North America.

Still, the concept of a small, stylish, and affordable electric Subaru holds promise — especially for buyers in Europe and urban Asia, where EV adoption is on the rise and smaller footprints are more desirable.