We can now add Subaru to the growing list of carmakers easing off their all-electric investments, as shifting consumer tastes and surging demand for hybrids reshape the market. The move could see several of Subaru’s planned EVs pushed further down the timeline.

Read: Subaru STI Can’t Decide If It Wants Gas Or Electric, So It Built Both

During the automaker’s most recent earnings briefing, president Atsushi Osaki blamed “increasing demand for hybrids and the reappraisal of internal combustion engines” as the reason for delaying “the timing of full-scale EV mass production investment.”

Adjusting The EV Roadmap

Subaru had committed 1.5 trillion yen, or about $9.74 billion, in electrification by 2030. It has already poured in 300 billion yen ($1.94 billion) of this amount, and while the remaining 1.2 trillion yen will still be invested, they will be “reviewed,” according to Nikkei Asia.

In the immediate term, the timeline change won’t have a significant impact, as the company still plans to launch four electric SUVs built in collaboration with Toyota by the end of 2026. However, it may delay four other EVs that it had planned to develop in-house by 2028.

Hybrid Takeover

The trend towards hybridization has been apparent over the past 18 months, prompting other car manufacturers, like Hyundai, to increase investments in this space.

Compounding this shift are economic headwinds. With the loss of the federal EV tax credit in the United States and the added burden of steep automotive tariffs, manufacturers are being forced to tighten budgets and spend more strategically.

Subaru says it expects to take a 210 billion yen ($1.36 billion) impact from the tariffs this year. For the financial year ending March 2026, it expects a net profit of 160 billion yen, a massive 53 percent decline from the year prior.

To cushion the blow, Subaru plans to trim costs by 200 billion yen ($1.29 billion) by 2030, an efficiency drive meant to steady the balance sheet as the market evolves.

The newest EV in Subaru’s portfolio is the Uncharted, a reworked and rebranded version of Toyota’s latest electric C-HR. Subaru has given it a tougher, more adventurous character, staying true to its outdoorsy image even as it reconsiders how quickly to go all-in on battery power

Source: Nikkei Asia

Update: We’ve added a full gallery of live shots straight from the Tokyo motor show floor, where Subaru’s duo of STI concepts finally step out from the renderings and into the real world.

One by one, Japan’s major automakers are unveiling their lineups at the Japan Mobility Show 2025. This time, the spotlight turns to Subaru, where attention is centered on two STI-branded concepts: one fully electric and the other featuring a five-door hatchback design.

For this year’s event, the automaker has split its presentation into two distinct themes, Performance and Adventure, united under the banner “Driving the Subaru Difference”.

The STI Studies

Leading the lineup are two world premieres from STI, the Performance-E and Performance-B concepts. The Performance-E is a fully electric model described as “spearheading Subaru’s new generation”, hinting that it could evolve into a future production car – possibly an electric successor to the Levorg.

More: The Next Chapter For Subaru’s Sports Wagon Could Hide A Powertrain Surprise

According to Subaru, the Performance-E “combines thrilling aesthetic proportions with outstanding aerodynamics and practicality”. The concept features sharp body surfacing, bold LED headlights, and large bumper intakes, with a silhouette that leans toward a sporty estate.

The sloping roofline leads to a ducktail spoiler with two fins instead of a conventional rear wing and a large diffuser with an F1-style brake light. Another cool touch is the gold-finished aero covers on the wheels, contrasting with the black alloys and the red brake calipers.

The electric concept promises a “driver-friendly layout and a comfortable, spacious interior”, while incorporating “various innovative technologies” for “intuitive, exhilarating driving experiences”. Subaru has shared renderings of the architecture, revealing a floor-mounted battery, front and rear electric motors, and a sporty suspension setup.

Hatchback With Heritage

The second debut, the Performance-B STI concept, sticks with internal combustion power. It’s described as broadening Subaru’s range of performance options, which also makes us believe it could evolve into a production offering.

More: Subaru Impreza S-Edition Looks Like An STI But Goes Like A Rental

The hot hatch looks like a high-performance version of the current Impreza five-door hatchback elevated to STI glory. It rocks wide fenders with integrated vents, a hood scoop, redesigned bumpers with larger intakes, and a wider grille with a red stripe. There is also a massive rear wing and a rather complicated diffuser without visible exhaust pipes.

The aggressive bodykit, in combination with the alloy wheels shod in high-profile tires, make it resemble a motorsport-ready machine. Under the hood sits a boxer engine paired with Subaru’s Symmetrical All-Wheel Drive system, although we don’t have any info concerning output figures.

While it’s uncertain whether Subaru will put this hot hatch into production, such a model would recall the third-generation WRX STI from 2008 and could challenge the Toyota GR Corolla in spirit and layout.

Adventure-Ready SUVs

On the adventure side of the display, Subaru showcases prototypes of the fully electric Trailseeker (E-Outback) crossover, the new Forester Wilderness, and the latest Outback Wilderness.

More: Subaru Plans To Win Europe With Rebadged Toyotas, One Of Which Is An E-Outback

All three will make their Japanese debut fitted with optional outdoor accessories. The Trailseeker carries a roof box, the Forester mounts two large canoes, and the Outback features a roof rack with a bike carrier.

Retro Meets Wild

Rounding out the show stand will be the Family Huckster, a reimagined 1983 Subaru GL Wagon fitted with dramatic performance and aerodynamic upgrades.