Japanese automaker Subaru Corporation has announced that it is postponing indefinitely the launch of four in-house developed battery electric vehicle (BEV) models, scheduled to be launched by 2028, according to reports. The move reflects slowing BEV demand in the US following policy changes by the Trump administration.
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Subaru is understood to have completely scrapped the launch timeline for the four in-house BEV models, while its entire BEV development programme is now also under review. The company said it has decided to concentrate its management resources instead on developing hybrid-electric vehicles and gasoline-powered vehicles.
Until now, Subaru has relied on platform sharing and technical partnerships with Toyota Motor for its BEVs, including the Toyota BZ4X-based Solterra SUV, but was planning to put into production battery-powered models based on its own platforms.
Subaru’s president, President Osaki Atsushi, stated following the release of the company’s earnings for the 2025 fiscal year (FY25), that “the penetration speed of BEVs in the US market, our main battlefield, has become considerably slower. We will finalize the introduction timing while carefully monitoring market conditions.”
The automaker’s new plant in Oizumi, Gunma Prefecture, which was built to produce in-house developed BEVs from 2027, will instead produce gasoline-powered vehicles. Production of BEVs could be added later if market conditions become more favourable.
Subaru confirmed that its JPY 1.2 trillion (US$ 7.6 billion) investment plans remain unchanged, but that the funds will be reallocated to other departments within the company.
