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Another automaker is now turning to more affordable EVs as the competition heats up

Another automaker is now turning to more affordable EVs as the competition heats up

After seeing the success of rivals, Subaru doesn’t want to be left behind. Subaru looks to join Volkswagen, Hyundai, Kia, and several other automakers that are doubling down on more affordable EVs.

Subaru is looking to launch more affordable EVs

Following the launch of its new Uncharted electric SUV last week, Subaru is now considering introducing a smaller, entry-level EV to anchor its lineup.

Subaru’s global EV product manager, Inoue Masahiko, told Autocar during a recent interview that the company was looking into launching a new electric car to sit below the Uncharted.

Masahiko explained that “It’s something that is up for consideration, because we need to prepare a wider range of BEVs to meet every customer’s expectation.”

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The move follows the success of other automakers, which are already seeing surging demand with more affordable EVs rolling out. The Renault 5 EV, which launched earlier this year at £22,995 ($31,100), has already secured over 35,000 sales this year. It’s now the most popular EV among private buyers in the UK.

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2026 Subaru Uncharted EV (Source: Subaru)

Kia and Hyundai are also seeing strong initial demand for their new entry-level electric cars, the EV3 and Inster EV.

Through the first half of the year, the Kia EV3 is the sixth-best-selling EV in Europe, just ahead of the Renault 5. Hyundai’s Inster EV cracked the top 20 top-selling EVs in Europe last month, ranking #19 with over 3,300 units sold.

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Kia EV3 Air in Frost Blue (Source: Kia UK)

According to Jato, Chinese brands are quickly gaining market share in Europe, outselling Ford in the first half of 2025 combined. Five brands, including BYD, Jaecoo, Omoda, Leapmotor, and Xpeng, are leading the surge.

Although it’s “up for consideration,” we likely won’t see Subaru’s new entry-level EV for at least another few years.

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2026 Subaru E-Outback (Trailseeker) electric SUV (Source: Subaru)

Subaru’s European boss, David Dello Stritto, confirmed that a B-segment EV was worth exploring, but added that they would have to “wait and see how the Uncharted does” before expanding its lineup.

Dell Stritto said, “I reckon we need about two years to find out how it’s performing,” adding, “We might have come up with new ideas during that period, so in two years’ time we can talk again.”

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Toyota Aygo X Hybrid (Source: Toyota)

After expanding its partnership with Toyota, you can expect the Japanese automaker to have a hand in the new EV. Toyota’s product chief, Andrea Carlucci, told Autocar that an electric successor to the Yaris “is the idea,” but he added, “this is not quite now.”

It looks like we’ll have to wait at least another few years before we see the new Subaru EV. By then, it will likely be too little too late with many automakers preparing to launch longer-range, lower-cost electric vehicles.

For now, Subaru’s European EV lineup includes the refreshed Solterra, Uncharted SUV, and new E-Outback (which will be sold under the name Trailseeker in the US).

Source: Autocar

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