Subaru defends 2023 Crosstrek Hybrid but promises more is coming to compete against Toyota Corolla Cross, Hyundai Kona and Kia Niro

Subaru is preparing to launch a new-generation hybrid system as it accelerates into an electric future.

Speaking to CarsGuide, Subaru Australia's Managing Director Blair Read said the arrival of the all-electric Solterra would usher in a new era for the brand as it would be followed by a new "development" of the hybrid powertrain.

"Solterra is coming, then we'll see hybrids start to make some development within the range - and we're not too far away from either of those," Read said.

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Exactly what those changes are remains unclear, with Read not shedding any official light on the "development" plans.

However, earlier this year a report from Japan indicated that Subaru was ceasing any development on plug-in hybrids in order to focus on improving its traditional hybrid powertrain. That same report suggested that Subaru could utilise Toyota's hybrid systems to help play catch-up, as the pair are already sharing technical development for the Solterra/Toyota bZ4X.

Whatever the hybrid changes are, they will need to be a step up from the current hybrid powertrain offerings in order to compete on closer terms with the rest of the market.

The recently launched Crosstrek Hybrid uses a mild-hybrid system that adds just 12.3kW of power and 66Nm of torque to the 110kW/196Nm 2.0-litre petrol engine.

The recently launched Crosstrek Hybrid uses a mild-hybrid system that adds just 12.3kW of power and 66Nm of torque to the 110kW/196Nm 2.0-litre petrol engine. That only leads to a combined urban/highway fuel economy figure of 6.5 litres per 100km, which is significantly behind its closest in-market rivals.

In contrast, the Toyota Corolla Cross hybrid all-wheel drive uses 4.4L/100km and the two-wheel drive Kia Niro Hybrid manages just 4.0L/100km.

Despite not being able to match their rivals on efficiency, Read is adamant that it's a lack of supply, rather than lack of demand, that is having the greater impact of Crosstrek Hybrid sales.

Whatever the hybrid changes are, they will need to be a step up from the current hybrid powertrain offerings in order to compete on closer terms with the rest of the market.

"It's more supply that's holding it back, with a six- to eight-month lead time we see plenty of demand," Read said. "We see improvements coming in that area, around that whole space.

"Subaru has got a big commitment in ramping up its production capacity in regards to EVs and hybrids and advancements in that technology. So in regards to that we couldn't get enough to satisfy all demand, so that's something that's a great opportunity for us."

Production restrictions have impacted Subaru's plans for the launch of the Solterra, with the electric SUV now not due until later in 2023, after the original plan to launch it by June fell through.