Subaru Launches Its First American-Built Hybrid to Take on Toyota and Honda

Subaru has made a significant move in the automotive market with the launch of its first-ever hybrid vehicle produced in the United States: the 2026 Subaru Forester Hybrid.

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Subaru Introduces First U.S.-Built Hybrid with the 2026 Forester - © Subaru

Built at Subaru’s Indiana facility, this marks the company’s entry into the growing hybrid segment in North America. The vehicle combines a 2.5-liter flat-four engine with dual-electric motors, offering a competitive price point and extended range.

The decision to build the Forester Hybrid in the U.S. has proven to be timely, especially as automakers face the pressure of rising import tariffs. Subaru’s U.S. manufacturing strategy also allows it to respond more quickly to domestic demand, further boosting the model’s competitiveness against established hybrid offerings. The hybrid version of the 2026 Forester joins Subaru’s extensive lineup, showcasing the company’s evolving commitment to hybrid technology and sustainable driving.

Subaru’s Hybrid Milestone in the U.S.

Subaru’s first hybrid model produced on American soil, the 2026 Forester Hybrid, represents a key shift for the brand in North America. According to Supercar Blondie, the hybrid variant of the Forester features a 2.5-liter flat-four engine coupled with dual-electric motors, delivering 194 horsepower and 199 lb-ft of torque.

The powertrain is designed for efficiency and longevity, with a maximum range of 581 miles. This model marks Subaru’s strategic entry into the hybrid market in the U.S., a move that has been in development for several years. With a starting price of $36,595, Subaru is positioning the Forester Hybrid as an affordable option in a highly competitive segment that includes popular models like the Toyota RAV4 Hybrid and Honda CR-V Hybrid.

Subaru of Indiana Automotive has officially launched production of the first-ever U.S.-built Forester Hybrid in Lafayette, Indiana – © Subaru

Benefits of Local Production

The decision to build the Forester Hybrid at Subaru’s Indiana facility brings several advantages. According to Autoblog, Subaru’s Indiana plant has been assembling the gas-powered Forester since its debut in 1997, but the hybrid version represents a new milestone. This localization helps Subaru mitigate the risks associated with import tariffs and strengthens the brand’s connection to U.S. consumers through the “Built in America” label.

The production shift also aligns with Subaru’s broader goal of responding more efficiently to market demand. With the discontinuation of the Subaru Legacy, which ended a 36-year production run, adding the Forester to the Indiana lineup allows the plant to operate at full capacity, as production volumes for other models like the Ascent and Crosstrek remain stable.

2026 Subaru Forester Hybrid – © Subaru

Trims and Features

The 2026 Forester Hybrid is available in four distinct trims: Premium, Sport, Limited, and Touring. Each trim level is designed to meet a variety of consumer needs, from those seeking a more basic model to those wanting more advanced features.

Subaru’s focus on safety is evident in the latest version of its EyeSight Driver Assist Technology, an SAE Level 2 driver-assistance system comparable to Ford’s BlueCruise. The hybrid Forester also shares its rugged credentials with the gas version, including the off-road-oriented Wilderness trim, which features a raised suspension and all-terrain tires. The Forester Hybrid is expected to compete strongly against rivals in the compact crossover segment, particularly with its blend of performance, safety, and value.

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