Subaru's EV Future May Depend On Toyota Longer Than Planned
EV Strategy Reset
Subaru expanded its U.S. electric vehicle lineup with the Uncharted and Trailseeker, which may be a welcome development for EV buyers, but the timing is difficult given Trump's tariffs. The Japanese marque posted a ¥226.9 billion hit, or about $1.42 billion at current exchange rates, from tariffs alone, forcing it to make adjustments.
According to Automotive News, one of those moves is delaying its in-house EV, which was expected to be built independently at Subaru's Oizumi plant in Japan (scheduled to open around 2028), in favor of internal combustion and hybrid vehicles. That means the current EV lineup – the Solterra, Uncharted, and Trailseeker, all tied to Toyota platforms – will likely remain in the mix for a bit longer.
Built On Toyota Bones
The Solterra and Trailseeker are essentially Subaru's counterparts to the Toyota bZ and bZ Woodland, respectively, while the Uncharted is closely related to the C-HR+. Collaborating with Toyota likely allowed Subaru to enter the EV market more cost-effectively, avoiding the massive upfront cost of developing a dedicated EV platform alone.
Subaru is also set to introduce a three-row EV, the Getaway, which is expected to share ties with Toyota's electric Highlander, toward the end of 2026.
While introducing an in-house EV brings several benefits, such as greater engineering independence, Subaru said it will continue monitoring market conditions, especially in the U.S., where tariffs continue to pressure automakers like Audi that rely heavily on imported vehicles. Aside from the aforementioned tariff hit, Subaru also took an additional ¥57.8 billion ($362 million) charge tied to EV-related write-downs and impairments.
Playing The Long Game
The U.S. is considered Subaru's biggest and most important market, so the automaker should continue making adjustments to protect profitability, even if that means significantly reducing resources allocated to EV models. In fiscal year 2025, 72% of Subaru's worldwide sales came from the U.S. market. For the current fiscal year, the company expects operating profit to nearly quadruple to ¥150 billion, or about $939.5 million.
Subaru recently saw a 50% increase in U.S. EV registrations in March 2026, though that growth was reportedly achieved with average incentives of $8,651 per vehicle – roughly $6,000 higher than the automaker's overall average. That likely explains why shifting focus toward internal combustion and hybrid vehicles – segments that continue to perform well over EVs in the U.S. – appears to be the more practical move until market conditions improve and its in-house EV arrives. Other automakers that have doubled down on hybrids include Toyota and Hyundai, while Nissan is set to introduce its e-Power series hybrid system to American buyers.
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This story was originally published May 16, 2026 at 8:15 AM.