Subaru to Review $10B Electrification Plan, Seeks Cost Cuts by 2030

• Subaru re-evaluating $10B EV investment plan.

• Hybrid and ICE development to receive added funding.

• 200B yen in annual savings targeted by 2030.

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Subaru plans to reassess its multibillion-dollar (1.5 trillion yen) investment in electric vehicle development as part of an effort to reduce operating costs and adapt to evolving trade dynamics and market demands.

The automaker said it is targeting annual savings of $1.3 billion (200 billion yen) by 2030, based on concerns about potential U.S. import tariffs that could affect Japanese-built vehicles.

Subaru will reallocate part of its electrification budget toward enhancing hybrid and internal combustion engine vehicle development. This represents an important shift from its earlier investment strategy, which was heavily focused on battery-electric vehicles.

The company did not provide a revised timeline for the adjusted investment strategy but indicated the redirection would strengthen flexibility across its powertrain lineup. The statement suggests that Subaru, like other automakers, is preparing for a more diversified product mix rather than a near-term full transition to electrification.

Subaru’s announcement follows concerns over potential increases in U.S. tariffs on imported vehicles, which could and will affect Japanese automakers’ pricing and competitiveness in North America. The automaker has not disclosed specific changes to its U.S. production plans or whether the revised strategy will alter launch timelines for upcoming electric or hybrid models.

Last spring, at the 2025 New York International Auto Show in Manhattan, Subaru presented the 2026 Trailseeker and an updated Solterra. In July, a third EV joined the lineup: the Uncharted. More recently, at the Japan Mobility Show, a first all-electric STI concept was revealed.

Source: Reuters