Subaru's Operating Profit Plummets 90% in FY2025 Amid EV Development Struggles

[Company Financial Report] Subaru's operating profit for fiscal year 2025 plunged 90% year-over-year, while net profit declined by 73%.

Core Development: Setbacks in In-House EV Development Trigger Massive Impairment

Subaru’s revenue for FY2025 rose slightly by 2.1% to 4.785 trillion yen, but operating profit amounted to only 40.1 billion yen, primarily due to U.S. tariff hikes and setbacks in its electrification transition. The company’s proprietary all-electric vehicle platform progressed slower than expected, resulting in an impairment loss of 57.8 billion yen.

Key Metrics: North American Market Under Pressure, Global Sales Decline

Subaru sold 896,000 vehicles globally in FY2025, a 4.3% year-over-year decrease. Sales in North America totaled 708,000 units, down 3.3%, accounting for more than 70% of total global sales.

Strategic Context: Dual-Use (Civilian-Military) Background Heightens External Risks

Subaru, formerly Fuji Heavy Industries, has historical involvement in defense-related businesses. On February 24, 2026, it was added by China’s Ministry of Commerce to its export control watchlist, further increasing uncertainty around its international operations.