SUBARU Australia has revealed more detail about its plans to reduce its portfolio-wide CO2 emissions by gradually adopting hybrid technology across the range while also adding select new battery electric (BEV) models.
Speaking with GoAuto at the recent Outback large SUV launch in Sydney, Subaru Australia general manager Scott Lawrence explained the two-part transition.
“Number one: what do consumers want? What are they buying? We have to make sure we do not lose sight of that,” he said.
“Secondly … when you look at NVES compliance, portfolio-wide is the best way of doing it.
“We will stick close to what consumers want, and we will keep bringing product in that hits (NVES targets) while staying on the right side of the client.”
Subaru, distributed by Inchcape Australia Limited (IAL), has moved more slowly than rivals to broaden availability of low-CO2 hybrid powertrains, and while it sells one BEV model in the Solterra, initial sales have been slow.
Like all car manufacturers, Subaru is subject to the New Vehicle Emissions Standard (NVES), which applies credits or penalties based on the fleet average CO2 tailpipe emissions across all units sold by a car-maker here annually.
Headline NVES limits of 117g/km CO2 for cars and SUVs for 2026 are already tough – and if the regime is not amended on statutory review late this year, limits ratchet to 92g/km CO2 for 2027.
Those limits are problematic because sales of the Solterra (0g/km CO2, as a BEV) are far too weak to offset the emissions of every other Subaru model. Just 202 Solterras were delivered in Australia last year – less than one per cent of the 39,005 vehicles Subaru sold here in 2025.
While Mr Lawrence acknowledged that Subaru needs to increase the proportion of electrified sales to comply with NVES, the local brand boss wants to get the timing right. Putting customers offside is a concern.
“There is a task in making sure your brand has permission to operate in technologies which help with the NVES battle, but consumers will dictate that,” he said.
BEVs get the NVES job done easiest and Subaru Australia will imminently add a stretched version of the Solterra to showrooms in the new 280kW Trailseeker – itself reminiscent of an electric Outback and badged as such in some markets.
Later, Subaru is likely to launch the Uncharted small battery electric SUV locally – “watch this space,” according to Mr Lawrence – while a new global three-row, seven-seat BEV Subaru model likely related to the recently revealed Toyota Highlander is understood to be under close consideration.
In the meantime, increasing the proportion of hybrid sales at Subaru dealerships is a priority for Mr Lawrence.
“The Forester (has a sales split of) 50:50 ICE to hybrid. That will change over time as hybrid acceptance grows, but it is reflective of customer demand,” he said.
But Subaru’s new-gen hybrid tech – which debuted under ambitious ‘Strong Hybrid’ branding in the new Forester – has not gone far enough.
The pure-petrol Forester emits 180g/km and the hybrid version 140g/km. Although electrification brings a near-25 per cent emissions reduction to the popular medium SUV, against an NVES headline limit of 117g/km, this is a band-aid on a worsening wound.
Matters are grimmer for the Crossstrek small SUV, which has an older-tech hybrid system producing 147g/km. A Strong Hybrid version is on the agenda.
Then there is the fact the new Outback large SUV – expected to generate close to 10,000 sales this year – has no hybrid option at all.
Mr Lawrence says there is a plan to fix Subaru Australia’s over-reliance on petrol powertrains for models where they are not needed – including with more hybrids.
“There are plans to expand electrification – not just BEVs, but hybrids across the range. While there is still demand for ICE we will make sure to still have that for consumers, but rest assured, we will be expanding our hybrid presence.”
Globally, Toyota Motor Corporation (TMC) is the largest shareholder in Subaru with a circa-20 per cent stake, and Subaru is increasingly tapping into Toyota’s knowhow to accelerate hybrid and BEV launches.
Locally, Subaru execs are keeping the timing and identity of crucial new hybrid launches close to their chests but there is confidence that NVES compliance can be achieved while still giving customers what they want.
“We deliberately showed the Trailseeker (at the Outback launch) to show with Solterra, Trailseeker, Strong Hybrid – and some cool announcements coming – that we have a portfolio that enables each model to have the powertrain it needs for the consumer,” said Mr Lawrence.