15/11/2025
Subaru Cuts EV Investment. A Shock Return to Next Gen Boxer Power
Subaru has taken a surprising turn in its future strategy. Instead of pushing full speed into electric vehicles, the company is shifting a big part of its 1.5 trillion yen EV budget toward new internal combustion engines and next generation hybrid systems. It is a major change driven by slowing global EV demand and steady interest in hybrids, especially in Subaru’s strongest markets.
CEO Atsushi Osaki says it makes more sense to delay large scale EV production while the market settles. Rising tariffs, especially in the United States, also played a part in the decision. Subaru still plans to launch four new BEV SUVs with Toyota by 2026, but several in house EV projects expected later in the decade may be pushed back.
The new focus is on an advanced e BOXER powertrain that pairs a redesigned boxer engine with a stronger hybrid system. Early development hints that future Forester, Crosstrek, and STI related models will use this setup. Subaru is updating the Yajima plant to build gasoline, hybrid, and electric models on the same line so it can adapt quickly to demand.
The company also plans to cut around 200 billion yen in yearly costs by 2030 through smarter manufacturing and better use of the engineering knowledge gained during EV research.
This shift shows Subaru believes the future will be a mix of technologies, not a full EV takeover. For enthusiasts who love the sound and character of a boxer engine, this may be the most exciting news from Subaru in years.
