As manufacturers in Australia prepare to meet the Australian Government’s New Vehicle Efficiency Standard (NVES), Subaru says it’ll let its customers decide when and how its more efficient vehicles will be introduced.
The NVES is designedto incentivise manufacturers to reduce CO2 emissionsacross their vehicle lineups, and officially commenced on January 1, 2025. Monetary penalties began on July 1, which now means manufacturers will be penalised $100 per g/km of CO2 for every vehicle that exceeds the average carbon emissions target set each year.
Speaking at the Australasian launch of the sixth-generation Forester, Subaru Australia general manager Scott Lawrence said the brand had plans in the works.
“First and foremost, we support initiatives to reduce CO2, and we support any actions in that space,” he told CarExpert.
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ABOVE: Subaru Forester S:HEV
“Our response to that is product. Making sure we’ve got the right product in the market. Forester Strong Hybrid is our first Strong Hybrid in the market, and that’ll definitely help.”
Subaru’s new Strong Hybrid (S:HEV) powertrain is a traditional hybrid developed with the support of technology from Toyota. It’s intended to be a substantial upgrade over the hybrid available with the previous generation, bringing improved performance and fuel economy.
The Japanese brand also has only one electric vehicle (EV) here, the slow-selling Solterra SUV, which was developed in partnership with Toyota and twinned with that brand’s bZ4X. While the Forester is expected to sell well given the nameplate’s figures in recent years, the Solterra is currently down 56.5 per cent year-to-date with only 121 deliveries in 2025.
The remainder of Subaru’s lineup is dominated by petrol-only vehicles, ranging from the small and economy-focused Impreza to the sporty turbocharged WRX. This is despite the availability of mild-hybrid e-Boxer versions of the Impreza overseas.
ABOVE: Subaru Crosstrek S:HEV
The Crosstrek e-Boxer hybrid has also been available in Australia since 2023, which like the outgoing Forester hybrid falls short of rivals from Toyota in terms of fuel economy.
However, Subaru does offer a Crosstrek S:HEV in Japan, which features a similar powertrain to the new Forester and could potentially be brought here.
Additionally, Subaru recently unveiled the Trailseeker EV in the United States, while the Uncharted EV made its debut last week. These models have not been confirmed for Australia, but like the Solterra, they are twinned with Toyota models – the bZ4X Touring and C-HR+, respectively.
“Ultimately though, consumers will choose. What we see playing out is we’re going to continue to offer [internal combustion] for as long as it’s possible, again because consumers will choose,” Mr Lawrence told CarExpert.
“We’ll offer Strong Hybrid, and we’ll offer EV too. We’ll continue to expand that EV range in line with [Subaru Corporation’s] ambition to grow them. So, multi-powertrain.”
ABOVE: Updated Subaru Solterra (left) and Subaru Trailseeker
Under the NVES, manufacturers must meet a set average carbon emissions target across their lineup, which decreases annually. The current target is 141g/km for Type 1 vehicles, or passenger cars, which will decrease to 58g/km by 2029.
For context on Subaru’s situation, a petrol Forester produces 180g/km of CO2, while the Strong Hybrid produces 140g/km. Further, Subaru claims 170g/km for the 2.0-litre Impreza, 168g/km for a non-turbo Outback, and 225g/km for a manual WRX.
The emissions for these comparatively popular vehicles will be challenging to offset for Subaru’s EVs in Australia, especially given the current low demand for the Solterra and unclear local intentions for the Trailseeker and Uncharted.
“I need to reiterate – we will also be reactive to what consumers want. They’re the ultimate decider when it comes to powertrain choice and powertrain demand,” Mr Lawrence added.
When CarExpert asked whether Subaru Australia was concerned about meeting the current NVES emissions targets, Mr Lawrence simply replied, “no”.
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