Toyota will build the next-generation Corolla in China starting in 2028, through its FAW Toyota joint venture with state-owned FAW Group. The Corolla, the brand's best-selling vehicle with more than 57 million sold since 1966, will be offered as an EV, hybrid, plug-in hybrid, and gas car on Toyota's multipathway platform. Toyota has not released battery or powertrain specs, but reports point to EV versions with at least 250 miles of range and a new 1.5-liter hybrid system with around 134 horsepower. The model is expected to debut as a 2028 model.
Subaru, which had been co-developing electric SUVs with Toyota, is now preparing to go its own way for the next generation. It showed a test mule with its first dedicated EV platform, a 509-horsepower all-wheel-drive powertrain, and a Panasonic battery pack that is 24 percent lighter than the pack in its current EVs. Subaru says the new setup can do 0 to 62 mph in under 4 seconds, and some of the technology will roll out around 2029. It is also developing an in-house integrated ECU for over-the-air updates and a custom AMD chip for future EyeSight systems. The prototype still uses an e-axle developed with Aisin and Panasonic cells, so the break from Toyota is not complete.
The two announcements are separate but point to the same pressure. Toyota's chairman, Akio Toyoda, has said the company must adapt or 'cannot survive' amid new Chinese competition, and Toyota's China sales fell 23 percent for seven straight months. Toyota's answer is to embed its best-selling model in China's manufacturing and supply chain to cut costs. Subaru, facing pressure from Chinese brands such as BYD and EV makers like Tesla, is instead betting that owning its own EV technology will let it move faster and keep its brand identity. In short, Toyota is leaning into China; Subaru is leaning away from its longtime partner.