Subaru is going to get serious about electric cars within the next few years, since Subaru has confirmed plans for a plug-in hybrid and an all-electric car. The first model will be a new plug-in hybrid next year, which will be based on one of Subaru’s existing models.

Subaru is going to spend $1.2 billion on R&D over the next year.

The new plug-in hybrid will likely be based on the new XV/ Crosstrek, since CEO Yasuyuki Yoshinaga recently hinted at it. “If there’s already an attractive Subaru model, for example the XV crossover, and if a customer in Beijing wants one but is only allowed to buy an electric vehicle, if there’s no electric version then he can’t buy it. Providing the choice of an EV means the customer can still desire the same Subaru.”

Related: 2018 Subaru Crosstrek heads to the New York Auto Show

The new plug-in hybrid will be followed by a all-electric Subaru by 2021. Subaru will likely introduce more electrified versions of its current lineup, since Subaru prefers that strategy instead of building a standalone sub-brand for its EVs, like BMW or Mercedes-Benz.

Source: Bloomberg