Subaru has hinted at a return of the STI with two new hatchback models.

Subaru has hinted at a return of the STI with two new hatchback models.

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      It's astonishing to think that the Subaru WRX STI hasn't been on the market for nearly five years. We’ve been reassured multiple times that this performance icon isn't truly gone—it's merely on pause, awaiting revival in an electrified version, whether hybrid or fully electric. At the Japan Mobility Show at the end of October, Subaru will unveil two STI-themed concepts—one fully electric and another featuring the WRX’s signature horizontally-opposed engine.

      Unfortunately, Subaru is among the automakers notorious for presenting seemingly plausible show cars that never materialize. Fans were eager for a turbocharged BRZ STI during its first generation, leading Subaru to showcase two concepts over four years without selling either. This tendency is a hallmark of the brand, yet there are reasons to believe that what we’re about to see may hint at a production model.

      First, consider the Performance-E STI concept. Subaru claims this EV “represents the future of the [brand’s] Performance Scene,” showcasing both “thrilling aesthetic proportions” and “practicality.” The limited teaser images released depict the vehicle's front corner, featuring a slender headlight reminiscent of a Tesla Model 3. It also appears to be a hatchback, which is surprising given that the WRX has been a sedan for some time.

      An image from the Subaru JMS website shows outlines of the Performance-B (front) and Performance-E concepts, both hatchbacks! Subaru

      The second show car—the Performance-B STI concept—has us even more curious. It strongly resembles a modern WRX, or more accurately, a Levorg (the Japanese WRX wagon not available in the States), characterized by a prominent wing and elongated roof, though perhaps not quite as lengthy as a wagon’s. Subaru describes this concept as one that “achieves a balance of advanced performance and power with practicality” and “flexibly incorporates” the brand's existing technologies, including its boxer engine and symmetrical all-wheel-drive system. The mention of the engine as a “base” suggests a hybrid powertrain, making this type of vehicle more likely to go into production soon.

      Why is this the case? As other automakers scale back on their all-electric ambitions, Subaru is in a position to pursue a gas-powered sports car in the short term. Stricter emissions regulations worldwide are complicating the development of fully internal combustion engine vehicles, but a battery-assisted option could address some of those challenges. This would also provide Subaru a clear opportunity to market an STI above its current WRX lineup.

      The challenge is that if Subaru shelved any plans for the current-gen STI years ago, reviving that initiative would take some time, as car development is a lengthy process. About 14 months ago, veteran journalist Jonny Lieberman reported hearing that Subaru was actively working on a new STI. Wouldn't it be exciting if one of the upcoming cars in Japan offered a glimpse of that?

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Subaru has hinted at a return of the STI with two new hatchback models. Subaru has hinted at a return of the STI with two new hatchback models.

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Recent data reveals that average transaction prices have reached an unprecedented level, largely due to robust sales of electric vehicles (EVs) and increased demand for luxury models, leaving more budget-conscious buyers out of the market. Last month, the average transaction price reached a record $50,080, reflecting a 3.6% increase compared to the previous year and crossing the $50,000 mark for the first time. This surge in prices is attributed to strong sales of EVs and luxury cars. Kelly Blue Book (KBB) highlights that "new-vehicle prices have been steadily increasing for over a year, with the acceleration in recent months." The average transaction price increased by 2.1% from August and 3.6% from the same month last year. Additionally, average manufacturer suggested retail prices (MSRPs) also set a new record at $52,183, marking a 4.2% rise compared to the previous year. The surge in numbers may be partly due to a rush on tax credits for EVs, with KBB estimating that 11.6% of last month’s sales were electric vehicles, also a record. The average transaction price for an EV was $58,124. It's anticipated that sales may decline following the removal of the clean vehicle tax credit, although automakers have started offering substantial incentives themselves. KBB pointed out that automakers allocated 7.4% of average transaction prices toward incentives, approximately $3,700. This figure represents the highest percentage seen this year and has slightly increased from 7.2% in August, maintaining parity with the 7.3% rate from September 2024. Tata, the owner of Jaguar Land Rover, reported the highest average transaction price at $102,096 last month, followed by Mercedes at $75,700 and BMW at $69,924. In contrast, Subaru had the lowest average transaction price at $36,092, just ahead of the Renault-Nissan-Mitsubishi Alliance, which recorded $36,547. Erin Keating, executive analyst at Cox Automotive, remarked, “Prices tend to rise over time, and today’s market is a clear indication of that. While many affordable options exist, numerous price-sensitive buyers are opting to either stay inactive or explore the used-vehicle market.” Consequently, the market is being largely supported by wealthier households with access to capital and favorable loan rates, thereby sustaining the higher end of the market. Keating also mentioned that while tariffs are contributing to rising costs, the primary driver of September’s pricing trends was the favorable mix of EVs and luxury vehicles pushing the new-vehicle average transaction price to new heights. Recent data reveals that average transaction prices have reached an unprecedented level, largely due to robust sales of electric vehicles (EVs) and increased demand for luxury models, leaving more budget-conscious buyers out of the market. Last month, the average transaction price reached a record $50,080, reflecting a 3.6% increase compared to the previous year and crossing the $50,000 mark for the first time. This surge in prices is attributed to strong sales of EVs and luxury cars. Kelly Blue Book (KBB) highlights that "new-vehicle prices have been steadily increasing for over a year, with the acceleration in recent months." The average transaction price increased by 2.1% from August and 3.6% from the same month last year. Additionally, average manufacturer suggested retail prices (MSRPs) also set a new record at $52,183, marking a 4.2% rise compared to the previous year. The surge in numbers may be partly due to a rush on tax credits for EVs, with KBB estimating that 11.6% of last month’s sales were electric vehicles, also a record. The average transaction price for an EV was $58,124. It's anticipated that sales may decline following the removal of the clean vehicle tax credit, although automakers have started offering substantial incentives themselves. KBB pointed out that automakers allocated 7.4% of average transaction prices toward incentives, approximately $3,700. This figure represents the highest percentage seen this year and has slightly increased from 7.2% in August, maintaining parity with the 7.3% rate from September 2024. Tata, the owner of Jaguar Land Rover, reported the highest average transaction price at $102,096 last month, followed by Mercedes at $75,700 and BMW at $69,924. In contrast, Subaru had the lowest average transaction price at $36,092, just ahead of the Renault-Nissan-Mitsubishi Alliance, which recorded $36,547. Erin Keating, executive analyst at Cox Automotive, remarked, “Prices tend to rise over time, and today’s market is a clear indication of that. 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Subaru has hinted at a return of the STI with two new hatchback models.

Subaru announced that the WRX STI will make a comeback in an electrified form. It will showcase two electrified performance concepts at the Japan Mobility Show.