Subaru delays electric vehicle rollout and shifts to hybrids

Saturday 16 May 2026 - 11:08

By: Dakir Madiha

Subaru delays electric vehicle rollout and shifts to hybrids

Subaru has postponed the planned 2028 launch of fully in-house electric vehicles, marking a major adjustment in its electrification strategy. The Japanese automaker cited slowing demand for battery electric vehicles and shifting policy conditions in the United States as key factors behind the decision. Production plans at its Oizumi plant will now prioritise gasoline and hybrid models, while dedicated EV manufacturing has been delayed indefinitely.

The company had originally planned to introduce up to four self-developed electric vehicles by 2028. These models were expected to be built on a new production line designed specifically for EV output in Japan. The revised timeline reflects a broader reassessment of investment priorities as Subaru adapts to weaker-than-expected uptake of electric vehicles in key export markets.

Subaru previously committed substantial resources to electrification, including an investment package worth around 1,500 billion yen, or roughly 10 billion dollars. That strategy aimed to scale up EV production capacity and move toward a significantly electrified lineup by the end of the decade. The company has now begun redirecting part of that funding toward hybrid systems and internal combustion engine development. It has also stepped back from earlier targets linked to achieving a 50 percent electrified vehicle share by 2030.

Despite the shift, Subaru will continue to rely on its partnership with Toyota for electric vehicle development. Its current EV lineup, including the Solterra, Trailseeker and Uncharted, has been co-developed under this collaboration. A fourth model, the Getaway, is expected to launch in the United States later this year, reinforcing the company’s dependence on shared platforms as it delays its standalone EV roadmap.

The decision places Subaru within a wider industry trend in which several automakers have slowed or recalibrated their electric vehicle ambitions. Other major manufacturers have scaled back planned EV launches or redirected investment toward hybrids amid weaker demand growth, especially in the United States. Subaru, which generates around 70 percent of its global sales in the US market, now aligns its strategy more closely with current consumer demand patterns and policy shifts affecting electric vehicle incentives.