"Electric Vehicle Market Shifts: Subaru Hits the Brakes on New Plant. In a surprise move, Subaru has put its plans to produce electric vehicles at its state-of-the-art Oizumi plant in Japan on hold, citing a significant downturn in demand for EVs and crippling U.S. tariffs that have decimated the company's profits. The U.S. tariffs, imposed in fiscal 2025, have resulted in a staggering 90 percent drop in Subaru's profits, forcing the company to re-evaluate its investment strategy. As the global EV market continues to evolve, Subaru's decision to postpone its in-house EV production raises questions about the future of the company's electric vehicle plans and its ability to compete in a rapidly changing industry."
Subaru postpones in-house EV production at its new Oizumi plant in Japan amid slowing EV demand and U.S. tariffs that hammered fiscal 2025 profits by 90 percent.
