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Redland Bayside News > Motoring > Subaru’s hybrids and EVs look set to save the almost extinct STI
Motoring

Subaru’s hybrids and EVs look set to save the almost extinct STI

Redland Bayside News
Redland Bayside News
Published: August 14, 2026
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4 Min Read
COMEBACK PLANS: Subaru has established a dedicated Sports Vehicle Planning Office.
COMEBACK PLANS: Subaru has established a dedicated Sports Vehicle Planning Office.
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Drive.com

FOR years, Subaru enthusiasts have watched one of motoring’s great performance brands drift away from the cars that made it famous.

The WRX remained, but the iconic STI badge disappeared. Increasingly stringent emissions regulations and fuel economy targets pushed outright performance to the sidelines, leaving many fans wondering whether Subaru’s glory days were over.

Now, in a surprising twist, Subaru says the very technology many feared would kill performance cars – hybrids and electric vehicles – has instead given them a new lease on life.

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Speaking to Japanese publication Best Car, Subaru Chief Technical Officer Tetsuro Fujinuki admitted the company effectively abandoned high-performance models as it struggled to meet tightening Corporate Average Fuel Economy (CAFE) regulations.

“Until two years ago, CAFE regulations were very strict, and we couldn’t pursue power with the current 2.4-
litre engine installed in the WRX,” Mr Fujinuki said.

The decision saw Subaru shelve not only the WRX STI but also discontinue production of its heavy-duty TY85 six-speed manual transmission, capable of handling up to 600Nm of torque.

But the landscape has changed.

Strong sales of Subaru’s hybrid and electric models have improved the brand’s overall emissions performance, creating room within its vehicle line-up to once again develop enthusiast-focused cars without breaching fleet-average emissions targets.

“When we released a fuel-efficient strong hybrid, it turned out better than expected, and sales have been strong. Furthermore, electric vehicles are also starting to sell well,” Mr Fujinuki said.

The change has prompted Subaru to establish a dedicated Sports Vehicle Planning Office tasked with reviving the company’s sporting credentials.

Subaru has already begun teasing its intentions.

Late last year the company unveiled a WRX STI hatchback concept, while more recent teaser images previewed three performance models expected before the end of 2027. They include manual versions of the WRX and BRZ, along with an all-new performance hatchback that could become a more affordable entry point into Subaru’s sports car family.

While Subaru has stopped short of officially confirming the return of the WRX STI badge, the signs are becoming increasingly difficult to ignore.

Perhaps most intriguing is the company’s work on its turbocharged 2.4-litre FA24 engine.

Mr Fujinuki revealed the version currently being developed for Japan’s Super Taikyu racing series is already producing more than 350 horsepower – around 257kW – well above the current WRX’s 202kW output.

“The FA24 we’re developing for Super Taikyu already exceeds 350 horsepower,” he said.

“Subaru can do it if they put their minds to it.”

The revival extends beyond engines.

Mr Fujinuki confirmed Subaru has retained the tooling needed to manufacture the robust TY85 manual gearbox, opening the door for powerful manual performance cars to return alongside higher-output engines.

Development itself is also changing.

According to Subaru, new digital engineering processes have dramatically accelerated vehicle development, allowing engineers to experiment more quickly while reducing costs.

If Subaru delivers on its promises, the STI story may not be over after all.

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