Subaru Delays In-House EV Plans to 2028+ as US Demand Slows

Subaru has delayed its first in-house electric vehicles (EVs) as demand in the United States, its largest market, cools. The Japanese automaker had planned to introduce up to four independently developed battery-electric models by 2028, but those plans have now been pushed back.

The Oizumi plant, a new factory in Japan designed for EV production, will instead begin operations manufacturing gasoline and hybrid vehicles. Subaru has not specified a new launch timeline for its delayed EVs, with CEO Atsushi Osaki indicating the company will reassess market conditions before finalizing a revised schedule.

CEO Cites Slower BEV Adoption in the US

In comments reported by Automotive News, Subaru CEO Atsushi Osaki acknowledged the slowdown in battery-electric vehicle (BEV) adoption in the US, attributing it in part to easing environmental policies.

“In the US, our key market, the pace of BEV adoption has slowed due in part to the easing of environmental policies. Given this, the timing of our BEV market introduction will be pushed back. We want to begin a comprehensive reevaluation of the entire strategy, including which models to bring to market.”

This shift marks a significant change for Subaru, which had previously aimed for EVs to account for half of its global sales by 2030. The company’s planned battery factory project with Panasonic may also face delays as Subaru reconsiders its investment in EV development.

Current EVs Rely on Toyota Partnership

For now, Subaru’s EV lineup continues to depend heavily on its collaboration with Toyota. The MY26 Solterra, for example, shares its platform with Toyota’s bZ series. Newer models like the Uncharted and Trailseeker were also developed through this partnership.

Despite the delay in its in-house EV plans, Subaru’s EV sales in the US have not collapsed. Registrations for the Solterra increased in North America earlier this year. However, profitability remains a concern, as Subaru has relied on substantial incentives to move EV inventory—something the brand typically avoids.

Industry-Wide Shift Away from Aggressive EV Plans

The cooling demand and shifting US policies have prompted many automakers to reconsider their electrification strategies. Subaru joins a growing list of brands, including Honda, GM, and Stellantis, that are scaling back ambitious EV timelines in favor of hybrids and combustion-powered models that align better with consumer preferences.