The Subaru R1 was introduced on January 4, 2005. It was designed to fit within the Japanese keicar tax bracket.

The R1 is a two-door version of the Subaru R2, but with a shorter body and wheelbase. The R1 is unique in that it doesn't use up the maximum length allowed for by the keicar regulations - the last keicar to have done this was the 1989 Autozam Carol. While the R2 is a full four-seater, the R1 is a two-by-two.

The R1 is only available in one spec level, with one engine: the DOHC 16-valve AVCS engine is the middle child in the trio of engines for the R2. It's being marketed as a personal car, or a middle-aged couple's second car; a combination of leather and alcantara seating is available.

In its promotional materials, the R1 is frequently compared to the Subaru 360, the first production Subaru automobile.