Japan based automobile manufacturer Subaru Corp. (TYO: 7270) has launched its first ever all electric car named the Solterra in partnership with fellow Japan based car manufacturer Toyota Motor Corp. (TYO: 7203).
Subaru says it has been working on this project for two years together with Toyota Motor which is also the biggest shareholder in the company. Solterra, is a sport utility vehicle and this launch comes at a time when the demand for electric vehicle is increasing globally as countries are pushing for greener energies as they do not cause any harm to the environment.
The focus to production of electric vehicle poses a great challenge to smaller car manufacturers like Subaru due to the huge capital required to produce EVs these small car makers find it expensive to fund development of electric vehicles.
On the other hand, high profile vehicle manufacturing companies see this as an advantage over their smaller rivals since they have the financial capacity to fund the expensive production of electric vehicles.