Automaker Subaru is hitting the brakes on its electric vehicle (EV) production plans in Japan, citing a significant slowdown in demand and the devastating impact of U.S. tariffs on its latest financials. The company had announced ambitious plans to start in-house EV production at its new Oizumi plant, but those plans are now on hold due to a perfect storm of factors. With U.S. tariffs slashing Subaru's profits by a staggering 90 percent in fiscal 2025, the automaker is reassessing its EV strategy in a rapidly shifting market. As the global EV landscape continues to evolve, Subaru's decision to postpone its EV production plans raises questions about the company's long-term commitment to electric vehicles.
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.
