Subaru Delays Launch of In-House EVs and Revises Electrification Strategy

Subaru Corporation recently announced it will delay its plan to launch its first in-house developed battery electric vehicle (BEV), originally scheduled for 2028, citing persistently weakening demand in the pure electric vehicle market. The company has not yet disclosed a revised launch timeline and stated it will shift its resource focus toward developing hybrid and internal combustion engine vehicles. At a press conference, Subaru President Atsushi Osaki noted that in the U.S.—Subaru’s core market—the pace of EV adoption has clearly slowed. The company will closely monitor market trends before finalizing the launch timing for its self-developed BEVs. To date, all of Subaru’s pure electric models have been co-developed with Toyota. Since the launch of the Solterra BEV SUV in 2022, Subaru’s electric vehicle offerings have primarily targeted the North American market. The automaker also plans to reassess its original roadmap, which included launching four self-developed BEV models. As a result of this strategic adjustment, a new production facility at Subaru’s Oizumi Plant in Gunma Prefecture, Japan—initially slated to begin manufacturing in-house BEVs from 2027—will instead be used for gasoline-powered vehicle production first. Mixed-line production including BEVs will commence only after the official start of BEV manufacturing. Additionally, Subaru’s medium-term target of achieving 50% EV sales by 2030, along with its plan to jointly build a battery plant with Panasonic by fiscal year 2028, is expected to be postponed accordingly. For the fiscal year ended March 2024, Subaru reported an operating loss of approximately ¥57.8 billion (about $364 million) in its EV business, largely due to factors such as the reduction of U.S. federal EV purchase incentives.