Subaru is preparing to end petrol car sales in Europe and offer only electric vehicles (EVs) there from as early as 2028, Nikkei Asia reported.
The Japanese carmaker is expected to start reducing petrol model sales next year, with remaining vehicles sold until current stock runs out.
The change will affect models with Subaru's boxer engines, including the Forester and Crosstrek sports utility vehicles.
Subaru does not currently offer full-hybrid vehicles in Europe, though they are available in Japan and some other markets.
The carmaker has reportedly concluded that the engineering investment required to meet tougher European emissions rules would be out of proportion to its limited sales in the region.
It sold 23,000 vehicles in Europe in the financial year ended in March, under 3% of its global sales of 890,000.
The EU's latest vehicle emissions regime, Euro 7, is due to cover all new cars from November 2027, including models already on the market.
It retains most Euro 6 limits for cars but brings stricter heavy-duty rules, brake and tyre-wear standards, battery durability requirements and lifetime monitoring systems.
Separate carbon dioxide requirements are set to tighten in 2030, adding to pressure on manufacturers to increase EV sales.
EV sales in Europe have picked up after a period of slower growth.
Data from the European Automobile Manufacturers' Association, cited in the report, showed regional EV sales rose 60% year on year in September.
EVs made up 31% of vehicle sales, compared with 18% for petrol cars and 34% for hybrids.
In May, Subaru announced it was postponing the launch of four in-house developed battery electric vehicle models that were scheduled to arrive by 2028.
Then in July, it recalled 541,237 vehicles in the US after an incorrect Gross Axle Weight Rating was listed on the certification label during manufacturing.


