Car manufacturer Subaru is scaling back its electric vehicle (EV) ambitions in light of slowing demand and crippling tariffs. The company has announced a delay in its in-house EV production at its new Oizumi plant in Japan, a significant setback for the automaker's plans to shift towards a more sustainable and environmentally friendly lineup. The decision comes as Subaru grapples with a devastating 90 percent decline in profits for fiscal 2025, largely due to the impact of U.S. tariffs on its exports. With the EV market experiencing a slowdown, Subaru's strategic pivot is a stark reminder of the challenges facing the industry as it navigates the complexities of a rapidly changing automotive landscape.
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.
