Subaru is close to deciding where to build its electric vehicle plant in the United States, an initiative that’s a key element of its electrification strategy, the carmaker’s president has said.

While the current base of Indiana is a top candidate, the company is considering the location based on the procurement of onboard batteries and incentives from state governments, Atsushi Osaki said in a group interview. "The time is approaching for us to finally make a decision,” he said.

Subaru’s EV production is scheduled to begin as early as 2027 in the U.S., where sales of electrified vehicles are expanding, especially in California. In August, Subaru said battery EVs will account for 50% of global sales — or 600,000 units — by 2030.