Subaru Is Reconsidering Its Approach to Electric Vehicles | Carscoops

      Subaru is currently "re-evaluating" its electrification strategy, which includes the introduction of new electric vehicles (EVs).

      This decision comes in light of ongoing uncertainty regarding US tariffs and EV tax credits.

      The company’s proposed EV-only manufacturing facility may also need to produce hybrids and combustion engine vehicles.

      Subaru has been slow to introduce EVs into its lineup, and now it is reconsidering whether it should even make an effort to catch up with competitors. The automaker announced its reassessment of its electrification approach during a period of volatility in the automotive industry.

      Currently, Subaru’s US website lists only one EV: the recently updated Solterra. A second model, the Trailseeker, which is similar in size to the Outback and made its debut at last month’s New York Auto Show, is anticipated to be added to the lineup for 2026. However, it seems that few additional EVs will join the range in the near future.

      Tariffs and Tax Credits: Uncertainties Ahead

      Subaru, like all car manufacturers, is facing challenges not only due to concerns about a decline in EV adoption rates but also because of the absence of clear guidance from the US about future import tariffs and EV tax credits. Currently, there is no certainty about the tariff landscape in the coming six to twelve months or whether tax credits will continue to exist.

      Subaru estimates that tariffs implemented during Trump’s administration could cost the company $2.5 billion this year, since it has a manufacturing plant in Indiana but only produces about half of the over 700,000 vehicles it sells annually in the US. The rest must be imported, and while Subaru could theoretically increase its Indiana plant’s annual output from 345,000 to 500,000, its supplier network can only support up to 370,000 units without significant enhancements.

      International Production and Changing Plans

      The new Subaru Trailseeker will likely be manufactured abroad, with production anticipated to occur north of Tokyo, according to Auto News. The company also had intentions to establish an EV-exclusive plant but is reconsidering that plan, stating that it may need to incorporate combustion vehicles at this new facility.

      Subaru executives revealed these updates while discussing the company’s financial results for the fiscal year, which showed a 13 percent decline in operating profit to $2.7 billion. Global sales fell by 4.1 percent to 936,000 vehicles, and North American deliveries also dropped by 4.1 percent to 732,000 units, although sales in Japan increased by 5.4 percent to 104,000 vehicles.