Subaru indefinitely postpones in-house EVs after profits plunge 90%

Subaru has dropped 2028 as the target year for launching its own in-house developed electric vehicles, with no new timeline set. The Japanese automaker’s new EV factory will produce gas and hybrid models instead.

The decision comes after Subaru’s operating profits collapsed 90% for the fiscal year, with tariffs alone costing the company roughly ¥229 billion ($1.4 billion) and EV-related write-downs adding another $385 million in losses.

Subaru retreats from in-house EV development

Subaru had planned to roll out up to four independently developed electric vehicles by 2028, built at a new factory within the Oizumi Plant in Gunma prefecture. That plant was supposed to start EV production in 2027. Instead, it will now open producing gasoline and hybrid vehicles, with EV production pushed to an undefined future date.

This is the second time in six months that Subaru has pulled back from its EV commitments. Back in November, the company announced it was redirecting funds from its planned ¥1.5 trillion ($9.7 billion) EV investment toward hybrid and ICE development. Now, the in-house EV program has been shelved entirely.