Subaru joins EV push-back after massive losses joining Honda and Ford in delaying important electric car plans

Subaru has joined the lengthening list of global carmakers pushing black plans to produce new-generation EV models, with the Japanese maker preferring to take an initial financial hit through program rescheduling to benefit from what it believes will be longer-term savings.

Global players including Ford, General Motors, Mercedes-Benz, Stellantis, Volvo, VW, and most recently Honda, have shelved multiple EV model programs in the face of slower than expected market uptake of battery electric vehicles (BEVs) and ongoing consumer preference for hybrid and pure-combustion models.

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Speaking at Subaru’s most recent Board of Directors meeting in Tokyo, President and CEO Atsushi Osaki confirmed Subaru operating profit plummeted from ¥405.3 billion ($3.58 billion) in 2025 to ¥40.1 billion ($350 million) this year.

He said US tariffs on new vehicle imports alone had wiped out ¥226.9 billion ($2.00 billion) from earnings with “EV-related write-downs and impairments” accounting for another ¥57.8 billion ($510 million).

“In the US, our key market, the pace of BEV adoption has slowed due in part to the easing of environmental policies. 

“Given this, the timing of our BEV market introduction will be pushed back.

“We want to begin a comprehensive reevaluation of the entire strategy, including which models to bring to market.

“We will continue developing the core components of BEVs, but we will significantly reduce the resources allocated to this effort,” he said.

An all-new, in-house developed EV was scheduled to be produced at the brand’s new Oizumi plant in Gunma Prefecture, north-west of Tokyo, which is scheduled to open in 2028.

But that solo strategy departs from the relative cost-effectiveness of co-production with Toyota on current electric models including the Solterra (bZ4X), Uncharted (C-HR+) and Trailseeker (bZ4X Touring).

And as noted by Osaki-san, more than 70 per cent of Subaru’s global sales come from the US, with half of them imported from Japan and subsequently levied with a 15 per cent tariff.

Despite a recent uptick in demand for the Solterra, Uncharted and Trailseeker in America, deliveries fell 3.2 percent to 641,000 vehicles, with the new-generation Outback in particular failing to hit the target with prospective buyers who openly state a preference for the wagon-like configuration of prior models rather than the chunkier SUV shape of the latest iteration.

As to when the Oizumi EV program will be reenergised, Osaki said, “We intend to finalize the exact launch timing of our in-house BEV models after carefully monitoring market conditions. It is still too early to say a specific timeline at this point.

“We are revising our introduction strategy to anticipate when the US market enters the BEV adoption phase.”

Looking ahead, Subaru forecast coming year sales to increase 4.9 per cent to 940,000 vehicles, with North America up 3.9 per cent to 736,000 vehicles and Japan up 4.9 per cent to 108,000.

It’s worth noting Australian Subaru sales dropped 3.9 per cent for the 2025 calendar year (39,005 vs 40,604 units) and were down 19.3 per cent year-to-date at the end of April 2026 (9737 vs 12,067 units).