Subaru Delays In-House EV Development Plan

[Strategic Adjustment] Subaru has postponed the launch of its in-house developed all-electric vehicle, originally scheduled for 2028, due to weak market demand.

Strategic Rationale: Slowing EV Adoption in the U.S. Drives Resource Reallocation

Subaru President Atsushi Osaki stated that demand for electric vehicles in its core U.S. market has fallen significantly short of expectations. Combined with reduced government subsidies and insufficient charging infrastructure, this has prompted the company to pause its pure EV strategy. Of the originally allocated 150 billion yen budget for electrification, only 30 billion yen has been spent so far; the remaining funds will be redirected toward hybrid and internal combustion engine vehicle development.

Key Metrics: Impairment Loss Exceeds 57.8 Billion Yen, Profits Plummet

Due to the delayed plan, Subaru recorded a massive impairment charge in fiscal year 2025, causing operating profit to plunge 90% year-over-year to 40.1 billion yen and net profit to drop 73%. The original roadmap—including four in-house EV models and a target of 50% of sales from EVs by 2030—will now undergo comprehensive reassessment.

Industry Impact: Flexible Production Lines Shift to Multi-Powertrain Co-Production

The Yajima Plant in Gunma Prefecture has already been retooled to enable co-production of electric, hybrid, and gasoline-powered vehicles on the same assembly lines, allowing greater responsiveness to fluctuating order volumes. Subaru emphasized it will continue advancing jointly developed projects with Toyota, such as the Solterra, but the timeline for its in-house EV program has been indefinitely postponed.