Subaru Scales Back EV investment, Prioritizes Hybrids in $9.7bn Plan
TOKYO – Subaru Corporation is recalibrating its 1.5 trillion yen ($9.74 billion) electrification strategy, reducing investment in battery electric vehicles (BEVs) and redirecting funds toward hybrid technologies. The move comes as automakers worldwide assess shifting consumer preferences and evolving government support for electric vehicle adoption.
the Japanese automakerS decision reflects a broader industry trend of tempering initial EV ambitions amid slower-than-expected demand growth in some markets. Subaru, notably sensitive to potential U.S. tariffs due to importing roughly half its U.S.vehicle volume from Japan,is adapting to a landscape where hybrids currently offer a more appealing balance of fuel efficiency and affordability for many buyers.
This strategic shift acknowledges the current market realities, where consumer demand for fully electric vehicles isn’t keeping pace with earlier projections. The company intends to allocate more resources to hybrid technologies, which are gaining traction as a practical stepping stone toward full electrification. the revised plan aims to address both immediate consumer needs and long-term sustainability goals.
Seiya Ota of Nikkei Asia reported the news on November 11, 2023.
