Posted Monday, February 9, 2026 at 9:38pm
Japanese carmaker achieves milestone with mixed-model production line that builds EVs alongside petrol and hybrid vehicles, leveraging two decades of collaboration with Toyota to advance its electrification strategy
When Subaru’s E-Outback rolled off the assembly line at its Gunma Yajima Plant in early February, it represented more than just another electric vehicle (EV) entering a crowded market. The event marked the culmination of a carefully orchestrated manufacturing transformation – one that signals how established carmakers are adapting their production infrastructure to accommodate the uncertain trajectory of electrification demand.
The Japanese manufacturer has spent the past six months retrofitting its 550,000 sq.m Yajima facility to handle battery EVs without abandoning its core competencies. What sets this development apart is not the EV itself but rather the production philosophy underpinning it. Instead of building a dedicated EV factory, Subaru has created what it terms a mixed-model production line, where electric, hybrid and internal combustion vehicles flow through the same assembly sequence.
This approach reflects a pragmatic assessment of market realities. While governments push electrification mandates and legacy manufacturers pour billions into EV development, consumer adoption remains geographically fragmented and economically uncertain. Mixed-model production allows Subaru to hedge against this volatility, adjusting output ratios as market conditions shift without stranding capital in single-purpose facilities.
