WATCH: Subaru Reveals The Solterra EV Crossover Co-Developed With Toyota

Subaru on Thursday unveiled its first all-electric vehicle, the Solterra, the result of a two-year joint Development project with its biggest shareholder, Toyota.

The SUV launch comes amid accelerating demand for EVs as nations around the world tighten environmental regulation to cut carbon emissions. Toyota last month announced its version of a battery electric vehicle, the bZ4X.

The technological shift away from internal combustion engines poses a challenge for smaller carmakers, such as Subaru, that are less able to fund expensive development of EVs. At the same time, it is an opportunity for top-tier automakers, such as Toyota, to draw smaller rivals closer.

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