
Subaru Australia says customers will decide its powertrains, not government
The NVES is designed to incentivise manufacturers to reduce CO2 emissions across 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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The Australian Design Rule documents also show the next-generation Palisade, codenamed 'LX3', has again been approved in both seven- and eight-seat interior configurations. Hyundai Australia could not share any details on the new Santa Fe's powertrain options or otherwise when contacted by CarExpert. The Palisade HEV (hybrid electric vehicle) has been granted approval in four model grades – seven-seat front-drive and AWD, and eight-seat FWD and AWD. The Palisade HEV is already on sale in the US, where it's offered in both FWD and AWD layouts, both priced $US1000 ($1537) higher than equivalent petrol-powered versions. In Australia, the HEV is expected to be priced similarly to the existing diesel Palisade, which is currently priced from $70,800 before on-road costs, although Hyundai is currently offering drive-away deals on certain variants. The hybrid system comprises the Hyundai group's 2.5-litre turbocharged four-cylinder petrol engine (T-GDI) and six-speed torque-convertor automatic transmission, but adds a single electric motor powered by a 1.65kWh lithium-ion battery. US-market Palisade hybrids are rated at 258hp (245kW) and 339lb-ft (460Nm) of torque, and while these figures cannot be directly carried over to Australian vehicles, our Palisade hybrid should still out-muscle the turbo-diesel's 147kW/440Nm outputs. That will also make it more powerful than the 3.8-litre V6 in the current model, which makes 217kW/355Nm and has official combined fuel consumption figures of between 10.8-11.1L/100km. Based on overseas specs, the Palisade HEV will be marginally thirstier than the diesel, with average consumption of 8.8L/100km against the diesel's 8.6-8.8L/100km. The Palisade's non-hybrid 2.5-litre turbo-petrol four – already seen under the bonnet of the Hyundai Sonata N Line in Australia, where it makes 213kW/422Nm – has also been approved in seven and eight-seat Palisade, in both FWD and AWD forms. ADR documents also confirm the second-generation Palisade will be larger than its predecessor in almost every dimension, growing an additional 65mm to 5060mm in length on a 70mm longer (2970mm) wheelbase. Overseas specs show no change in cargo volume or cabin space between petrol and hybrid versions. The cabin is expected to feature a 12.3-inch digital instrument cluster and a 12.3-inch infotainment touchscreen, plus a more premium look including 'pixel' lighting elements. Further details are expected to be confirmed by Hyundai Australia as the MkII Palisade's Australian arrival – scheduled between October and December this year – draws near. MORE: Everything Hyundai Content originally sourced from: Details of the 2026 Hyundai Palisade have been uncovered ahead of second-generation large flagship SUV's scheduled Australian arrival in late 2025. The new Palisade had already been confirmed to bring a hybrid powertrain for the first time – replacing the existing 2.2-litre turbo-diesel four-cylinder – in order to rival the Toyota Kluger, and Hyundai had previously also said a 2.5-litre turbocharged four-cylinder petrol engine was "under study" for Australia. Now Australian government certification documents confirm the next Palisade will offer a full range of front-wheel drive and all-wheel drive options, powered by both hybrid and non-hybrid 2.5-litre turbo-petrol powertrains. CarExpert can save you thousands on a new car. Click here to get a great deal. No other engines are included in the filing, signalling the end of not only diesel power but also the 3.8-litre petrol V6 from the new Palisade lineup. The Australian Design Rule documents also show the next-generation Palisade, codenamed 'LX3', has again been approved in both seven- and eight-seat interior configurations. Hyundai Australia could not share any details on the new Santa Fe's powertrain options or otherwise when contacted by CarExpert. The Palisade HEV (hybrid electric vehicle) has been granted approval in four model grades – seven-seat front-drive and AWD, and eight-seat FWD and AWD. The Palisade HEV is already on sale in the US, where it's offered in both FWD and AWD layouts, both priced $US1000 ($1537) higher than equivalent petrol-powered versions. In Australia, the HEV is expected to be priced similarly to the existing diesel Palisade, which is currently priced from $70,800 before on-road costs, although Hyundai is currently offering drive-away deals on certain variants. 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