The automaker shifts focus to hybrids after weaker electric vehicle demand and policy changes pressure profitability.
Subaru has postponed the launch of four in-house developed electric vehicles until 2028, citing cooling demand and financial constraints. The decision reflects broader industry challenges as U.S. policy shifts and consumer interest wanes for fully electric models.
The company had previously targeted a 2026-2027 rollout for the EVs but will now prioritize hybrid vehicles. Subaru joins other automakers scaling back EV ambitions amid higher costs and slower adoption rates than forecast.
Shares of Subaru (FUJHY) showed muted reaction in early trading as investors await further details on the revised strategy.