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Toyota and Subaru have agreed to jointly develop a platform dedicated to battery electric vehicles (BEVs) for midsize and large passenger vehicles and to jointly develop a C-segment-class BEV SUV model for sale under each company’s own brand.

The two automakers will combine their strengths, such as the all-wheel-drive technologies of Subaru and the vehicle electrification technologies of Toyota. Together, they will aim to take a slice of the developing BEV market and take on other automakers who are now collaborating with each other. 

Since 2005, Toyota and Subaru have been deepening their cooperation in various fields, including development, production, and sales. Examples include efforts that led to the start of sales of the jointly developed rear-wheel-drive Toyota 86 and Subaru BRZ in 2012 and the start of sales of Subaru’s Crosstrek Hybrid original plug-in hybrid electric vehicle in the United States, to which was applied knowledge related to Toyota’s HEV technologies.

The automotive industry is in the midst of a once-in-a-century period of profound transformation, thanks to the emergence of CASE: Connected, Autonomous, Shared and Electric. This has seen new technology such as in-car connectivity, self-driving software, electrification and carsharing become the driving factor for consumers when looking at modern transport. 

“To respond with a sense of speed to the diversifying needs of these markets and to multiple challenges, both Subaru and Toyota believe that it is necessary to pursue a business model that goes beyond convention, crossing over industrial boundaries together with various types of other entities that share their aspirations,” said Toyota in a press release.

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