Subaru ditching plug-in hybrid development to focus on electric cars - report

Subaru is leaving behind its development of plug-in hybrid systems in order to focus on other areas of electrification, mostly traditional hybrid cars and pure electric cars.

A report from Japanese business and financial publication The Nikkei Asia says Subaru has cited weak sales of plug-in hybrids as the reason behind the decision.

The Nikkei report cites an S&P Global statistic that only two per cent of new cars sold in 2022 globally were plug-in hybrid vehicles, and even in Australia the share was significantly less than even full battery electric vehicles (BEV).

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A total 33,410 BEVs were sold here last year, 81,786 traditional hybrid cars, and only 5937 PHEVs.

For Subaru locally, the shift in global approach will likely further its electrification causes rather than hinder them, as the only major plug-in hybrid sold globally by the brand is the Crosstrek PHEV, which never made it to Australia.

Instead, hybrid versions of popular models like the Forester and the incoming Crosstrek (to replace the XV) will more of a focus, with the brand expected to be slightly less late to the EV party once development shifts in that direction.

Currently, Subaru works closely with Toyota on its EV development, having co-developed the Subaru Solterra and Toyota bZ4X.

With Toyota having recently hit the reset button on its electric car strategy in order to better compete with the more nimble likes of Tesla, the future of Subaru and Toyota’s cooperation is up in the air.

According to the Nikkei report, Subaru plans to release new hybrid vehicles by 2025 using technology already shared with Toyota.

Nikkei also reported last year that Subaru is planning to open Japan’s first electric car production plant in Gunma soon after 2027, with an investment of approximately 250 billion yen to its existing plant, or about AUD$11.08 million.