Last updated on November 17th, 2025 at 02:21 am
Subaru EV Delay Confirmed as Brand Reshapes EV Roadmap
A Subaru EV delay is now official, as the Japanese automaker is making major changes to its electrified vehicle game plan to adapt to the current new car market. According to a new report by Nikkei Asia, Subaru is responding to shifting consumer tastes and the loss of key government incentives by cutting immediate investments in full-electric vehicles and shifting more resources toward gas-electric hybrids.
Reallocating a $9.74 Billion Investment
The Pleiades brand is revising its massive 1.5 trillion yen (~$9.74 billion) investment in electrification. Of that amount, the company has already invested about 300 billion yen (~$1.95 billion).
Subaru noted that it is not changing the total investment amount but will reallocate the remaining funds to be treated more like an overall “growth investment.”
“Appropriate to Delay”: President Osaki
At an earnings briefing on November 11, President Atsushi Osaki confirmed the pivot. “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,” Osaki said.
U.S. Market Challenges: Tax Credits and Tariffs
The United States is a critical market for Subaru, accounting for over 70% of its global sales. In fiscal year 2024, Subaru sold 662,000 vehicles in the U.S. (71% of its 936,000 global total).
This market became much less EV-friendly when, on September 30, federal tax credit incentives of up to $7,500 for EV purchases were ended at the request of the Trump administration.
The Toyota Partnership Continues, But In-House EVs Paused
Subaru’s current EV, the Solterra, was twin-developed with Toyota (which sells the bZ4x). The upcoming Subaru Uncharted EV is also built on the Toyota-developed e-TNGA platform.
Subaru clarified that its plans for four total electric SUVs developed in collaboration with Toyota by the end of 2026 are not affected by this new strategy.
However, the Subaru EV delay applies to the brand’s in-house projects. Subaru is considering delaying the launch of four additional EVs that it planned to develop on its own by 2028, choosing to focus on hybrids and gasoline-powered vehicles instead.
Shifting Focus to Hybrids Like the Forester
Subaru currently uses Toyota’s hybrid technology combined with its own engines, a combination used in the Forester hybrid and the new-for-2026 Crosstrek hybrid.
This move is backed by strong sales data. While Subaru doesn’t break out hybrid numbers specifically, it moved 12,769 total Foresters in October 2025 and 145,806 Foresters so far this year.
Financial Headwinds and U.S. Production
Subaru’s financials tell a mixed story. In the first half of its fiscal year, revenue increased by 5% to 2.38 trillion yen (~$15.44 billion), but net profit declined 45% to 90.4 billion yen (~$586.67 million).
The company stated that the Trump tariffs had a massive 154.4 billion yen (~$1 billion) impact on its operating profit. To cope, Subaru has launched a project to reduce costs by 200 billion yen by 2030.
To offset the tariffs on cars imported from Japan, Subaru is ramping up production at its U.S. factory in Indiana. The company invested 40 billion yen (~$277 million) to begin producing the new Forester at the plant, which has now started. “Looking forward, we are excited that Forester production has shifted from Japan to Subaru of Indiana Automotive, Inc.,” said Subaru of America President and COO Jeff Walters.
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