Subaru Begins In-House EV Production at Gunma Yajima Plant with Flexible Manufacturing Strategy

Subaru has announced the start of mixed-model manufacturing for electric vehicles (EVs) and internal combustion engine (ICE) vehicles at its Gunma Yajima Plant located in Ota City, Gunma Prefecture. Beginning this summer, the company will manufacture both its flagship Forester SUV and EV models on a production line upgraded to support electrified vehicle production. This development marks a major milestone for the automaker as it initiates its first in-house EV manufacturing capability, strengthening its long-term electrification roadmap while enhancing production flexibility.

Subaru Expands Manufacturing Capabilities with EV Integration

The production line modifications at the Yajima Plant required six months of work beginning in August 2025. Through these upgrades, Subaru created a manufacturing environment capable of handling both EVs and conventional ICE vehicles on the same line. This mixed-model approach enables the company to respond more effectively to changing customer preferences and market demand while maximizing plant utilization. The strategy also supports a gradual transition toward electrification without disrupting existing vehicle production operations.

New Battery Assembly Plant Supports EV Production

As part of the broader facility transformation, Subaru renovated an existing building to establish a dedicated battery assembly plant. The addition of battery manufacturing capabilities is expected to strengthen vertical integration and improve supply chain efficiency for future EV programs. By bringing battery assembly operations closer to vehicle production, the company can streamline manufacturing processes and improve responsiveness to evolving production requirements as global EV demand continues to expand.

Yajima Plant to Increase Output Through Two-Shift Operations

The Yajima Plant currently operates two production lines, including an ICE vehicle line responsible for manufacturing the Forester and Outback models. To support higher production volumes, Subaru plans to introduce two-shift operations during the second half of FY2026 beginning in October. The expanded operating schedule is expected to improve capacity utilization and support both domestic and international demand as the company broadens its electrified vehicle portfolio.

Global Production Network Enhances Manufacturing Resilience

In addition to domestic manufacturing initiatives, Subaru is strengthening coordination with its production operations in the United States. From autumn 2026, the company's Indiana plant began producing the Forester, creating a more geographically diversified manufacturing footprint. By integrating production capabilities across Japan and the United States, Subaru aims to reduce exposure to fluctuations in demand, exchange rate volatility, tariffs, and evolving environmental regulations.

Key Developments in Subaru's Manufacturing Strategy

Through these investments, Subaru is building a production system designed to remain resilient amid evolving market conditions and regulatory changes. The ability to manufacture EVs and ICE vehicles on shared production lines provides operational flexibility while reducing risks associated with demand volatility and policy shifts. As electrification accelerates globally, the company's balanced manufacturing strategy positions it to adapt efficiently to future industry transitions and customer requirements.

Frequently Asked Questions

What is significant about Subaru's EV production at the Yajima Plant?
Subaru's EV production at the Yajima Plant is significant because it marks the company's first in-house manufacturing of electric vehicles. The facility now supports both EV and ICE production on the same line, enabling greater flexibility and operational efficiency. This approach allows Subaru to adjust production based on market demand while supporting its electrification strategy. The addition of a battery assembly plant further strengthens manufacturing integration and prepares the company for future growth in the EV segment.

How does Subaru's mixed-model manufacturing strategy benefit the company?
Mixed-model manufacturing allows Subaru to produce EVs and conventional vehicles using the same production infrastructure. This flexibility helps the company respond quickly to changing customer demand and evolving market conditions. By coordinating production between facilities in Japan and the United States, Subaru can also reduce exposure to currency fluctuations, tariffs, and environmental regulations. The strategy enhances resilience while supporting a gradual transition toward greater electrification across its global vehicle portfolio.