Subaru deprioritises electric models and increases focus on hybrids
Subaru intends to redistribute the funds from its planned electrification budget of 1.5 trillion yen (around 8.4 billion euros). The Japanese carmaker had set aside this amount for its powertrain transition through to 2030. According to Nikkei Asia, the plan has now been revised so that a larger share of funds will go to hybrid vehicles, with less directed towards battery-electric models. “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,” said President Atsushi Osaki, according to Nikkei Asia, during a financial results conference.
The 1.5 trillion yen budget for electrification through to 2030 was announced by Subaru in 2023. While the total amount remains unchanged, the company now refers to its roadmap as a “growth investment”. Around 300 billion yen (approximately 1.67 billion euros) has already been spent, and the allocation of the remaining 1.2 trillion yen is now under review, according to Nikkei. What is clear is that hybrid and petrol models will once again be prioritised over purely electric vehicles.
Subaru’s plan to launch four electric SUVs in cooperation with Toyota by the end of 2026 remains unchanged. However, the company is considering postponing the introduction of four additional electric models that were initially scheduled for in-house development by 2028.
The Japanese manufacturer is no longer providing updated sales targets. In 2023, Subaru had announced an official goal to sell 600,000 battery-electric vehicles annually by 2030 – representing 50 per cent of its global sales. That roadmap had marked a significant increase from a strategy published in early 2020, which had forecast an electrification rate of 40 per cent, including both hybrids and electric vehicles, by 2030.
Subaru’s first fully electric model was the Solterra, launched in 2022 and based on Toyota technology. For a long time, it remained the company’s sole EV, until the introduction earlier this year of the Trailseeker EV and Uncharted SUVs, both also developed with Toyota. Subaru has also announced an update to its debut model, the Solterra.
Subaru’s electrification strategy is being affected primarily by changing market conditions in the United States, a key sales region for the brand. Two years ago, the company had planned to sell 400,000 battery-electric vehicles annually in the US by 2028. The global target of 600,000 vehicles was originally set for 2030. In 2023, Subaru also announced plans to begin producing electric vehicles in the United States from 2027, although the company has not confirmed whether that plan remains unchanged.
This article was first published by Cora Werwitzke for electrive’s German edition.
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