Automakers who went all-in on EVs have taken a huge hit with the dramatic change in the automotive landscape. As EV demand cooled, global players including Ford, General Motors, Mercedes-Benz, Stellantis, Lotus, VW, and most recently Honda, were forced to shelve multiple EV model programs to build more hybrids.

Subaru has now joined that list of global carmakers pushing back their EV plans, as the Japanese automaker posted a 90% drop in operating profits in its fiscal year report.

Subaru’s president and CEO Atsushi Osaki confirmed operating profit plummeted from JPY 405.3 billion (USD 3.58 billion) in 2024 to JPY 40.1 billion (USD 350 million) in 2025. A huge chunk of that was wiped out by US tariffs, amounting to JPY 226.9 billion (USD 2 billion), alongside another JPY 57.8 billion, or approximately USD 362 million, in EV-related write-downs.

With this financial pressure, the company is forced to reevaluate its investment in EVs and related development directions.

An all-new, in-house developed EV was scheduled to be produced at the brand's new Oizumi plant in Gunma by 2028, but that has been put aside for now. Instead of prioritizing BEV production at the new facility, Subaru will now focus more heavily on building hybrid and internal combustion vehicles as the brand monitors market conditions. 

That means Subaru will continue to rely on rebadged Toyota models for its electric lineup, at least in the short term future. Currently, the Solterra, Uncharted, Trailseeker, and the Getaway EVs are badge-engineered models based on Toyota EVs like the bZ4X, the C-HR+, bZ Woodland, and the Highlander.