Subaru will scale back its investment in electric vehicles and redirect more funds toward hybrid technology, the company said, as demand trends and market dynamics reshape its long-term electrification strategy. While the Japanese automaker will continue developing electric SUVs in partnership with Toyota, it is reassessing the timeline for in-house production of additional battery-electric models.
The company had earmarked 1.5 trillion yen (around 8.4 billion euros) for electrification through 2030, but a larger share of that investment will now be allocated to hybrid powertrains, according to a report by Nikkei Asia.
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“Given the increasing demand for hybrids and the reappraisal of internal combustion engines, it is appropriate to delay the timing of full-scale EV mass production investment,” said President Atsushi Osaki during a financial results conference, as quoted by Nikkei Asia. Subaru now refers to its overall roadmap as a “growth investment,” having already spent around 300 billion yen, while the remaining 1.2 trillion yen is being redistributed.
The automaker’s plan to launch four electric SUVs with Toyota by the end of 2026 remains unchanged. However, Subaru is reportedly considering delaying four additional electric models that were to be developed independently by 2028. The company has also refrained from updating its long-term EV sales targets. In 2023, Subaru had aimed to sell 600,000 battery-electric vehicles annually by 2030, accounting for half of its global sales — a target that significantly expanded on its 2020 goal of a 40 per cent electrification rate, including hybrids.
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Subaru’s electrification strategy has been influenced by shifting demand patterns, particularly in the United States, its largest market. The automaker had planned to sell 400,000 EVs annually in the U.S. by 2028 and to begin EV production there in 2027, but it has not confirmed whether those targets remain unchanged. Subaru’s current EV lineup includes the Solterra, launched in 2022, and two newer models — the Trailseeker EV and Uncharted — both co-developed with Toyota.