Subaru Enlarges Investment In Hybrid Cars Instead Of Electricity

Hybrid Crosstrek. (Photo: Subaru USA)

JAKARTA The Japanese automaker, Subaru, said it would reduce investment in electric vehicles (EVs) and refocus on developing the hybrid model. The statement was made by President Subaru Atsushi Osaki.

Osaki explained that his party was originally committed to investing 1.5 trillion in electrification in the future, although until now Subaru has only used around 300 billion yen of this total.

"Given the increasing demand for hybrid and reassessment of internal combustion engines, it is only natural to delay the investment time for mass production of electric vehicles in full," Osaki said as quoted by Carexpert, Tuesday, November 18.

The report states that Subaru's plans to launch eight EV models globally until 2028 are still ongoing. Four of them are a model of collaboration with Toyota, which was previously targeted to arrive before the end of 2026.

However, the model that Subaru is fully developed is likely to experience schedule adjustments. Subaru also maintains the initial investment amount, but will shift its use as a growth investment.

Thus, the funds are not reduced, but are redirected to make it more flexible to follow market changes. One of the factors driving this strategy change is the reduction in electric vehicle incentives in the United States, including the elimination of cuts to USD 7,500 which is valid until September 30, 2025.

These conditions also affect the performance of Japanese automakers, including Subaru, which has been dependent on the US market for more than 70 percent of global sales. To adjust, Subaru plans to change one of Japan's largest factories to be able to produce gasoline, hybrid, and electric vehicles in one production line.

Osaki emphasized that this step is part of an effort to expand product lines to meet various needs. Subaru also strengthens collaboration with Toyota and Mazda in the development of low-emission engines, including the use of synthetic fuels.

The approach is part of Subaru's commitment to maintaining internal combustion engine technology amid the transition to electrification. Subaru's hybrid models such as Hybrid Forestr and Hybrid Crosstrack currently use Toyota technology.