Toyota, Subaru to jointly develop electric SUV as early as 2025

Toyota Motor Corp. and Subaru Corp. are set to ramp up cooperation in the development of electric cars, with a plan to launch an all-electric sport utility vehicle in the Japanese market as early as 2025, sources familiar with the matter said Tuesday.

The two companies will also consider collaborating on another EV targeted for North America and other regions, the sources said.

The move is part of Toyota’s efforts to strengthen its EV operations under new President Koji Sato. The Japanese auto giant has decided to tap the development and production capabilities of Subaru, in which Toyota has a...