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

For the second time this year, Toyota has delayed its plan to build a new factory dedicated to EV batteries in Japan’s Fukuoka Prefecture. The decision, while not unexpected, highlights the company’s cautious approach amid fluctuating global demand for electric vehicles.

Sales of Toyota’s EVs have slowed, yet the automaker maintains that the plant will still move forward in due course.

Read: Toyota’s Lineup Overhaul Could Include A Surprise Sedan And Electric Highlander

Toyota paid roughly 6 billion yen, about $39 million, for the site located in an industrial zone under development in northeastern Fukuoka Prefecture. As part of the purchase, the company agreed to begin construction within three years.

Earnings Results Shift The Timeline

Despite this, the car manufacturer announced in March that it would postpone work at the site due to fall demand for its EVs. The governor of Fukuoka, as well as Toyota President Koji Sato, have since confirmed work on the site has been postponed for a second time.

Production had initially been slated to start in 2028, though an updated timeline has yet to be provided, according to Nikkei Asia.

Word of the delay coincided with Toyota’s latest earnings report. It cut its global EV sales expectations by 10 percent from a previous forecast of 277,000 units for the fiscal year ending March 2026.

Even so, Toyota hasn’t ruled out adjusting its long-term targets, including its aim to reach 1.5 million global EV sales in 2026, a figure that could yet evolve as market conditions change.

Toyota Is Still Betting On EVs

Notably, Toyota is still investing heavily in new electric vehicles and factories. It continues to work towards opening a new factory in Shanghai, China, around 2027, to produce EVs for Lexus. This facility will likely handle the production of the LF-ZC and LF-ZL that were introduced a couple of years ago as concepts.

Toyota’s EV sales through the first nine months of the year were actually up 20.6 percent to 117,031 units, but even so, that number has still fallen short of expectations.

Until the company is confident that sales will rise significantly, it doesn’t make sense to rush and build new plants only for them to sit idle or operate at partial capacity.

Sources: Nikkei Asia

Since the debut of the Iconic SP concept at the 2023 Japan Mobility Show, Mazda enthusiasts have been waiting for the day it leaves the stand and hits the street. The coupe sparked immediate speculation about a spiritual successor to the RX-7, and top Mazda execs have been eager to keep that hope alive.

Yet, the latest reports suggest that the journey from concept to reality might not be as smooth as fans would like.

More: Mazda Vision-X Compact Might Be A Little Too Friendly

In late 2024, Mazda Design Chief Masashi Nakayama said the Iconic SP was “designed with real intent to turn it into a production model,” a goal echoed by CEO Masahiro Moro: “We still persist in making it happen.” Chief Technical Officer Ryuichi Umeshita later called it “a good successor for the RX-7,” though he admitted the project still needs a sound business case.

How Close Is It to Reality Now?

Our colleagues at Autocar recently spoke with Umeshita to hear how development of the much-anticipated model is progressing. The Chief Technical Officer was candid: “Let me answer personally—that is my dream car. I want to make it real. Technology-wise, I believe it’s possible. The only outstanding issue is financial.”

Earlier this year, Mazda trimmed its planned budget for electrification by half a trillion yen ($3.3B). The company is pursuing a “Multi-Solution” strategy that blends BEV, hybrid, and combustion engines rather than going all-in on electric.

More: Mazda Brings Back Turbo Rotary Engine With Vision-X Coupe

Between developing an EV-specific platform, a new hybrid setup, and the upcoming SkyActiv-Z engine, Mazda’s resources are already stretched thin. In that light, a bespoke sports car might not sit at the top of the spending list.

Rotary Revival With A Turbo

Even so, the idea hasn’t been shelved. The Vision X Coupe concept, unveiled at the 2025 Japan Mobility Show, shows Mazda hasn’t turned its back on the rotary dream.

If anything, it confirms that the company is still invested in the technology that defined some of its most celebrated cars as that study is powered by a hybrid unit with a turbocharged rotary engine.

Umeshita underlined that continuity: “We have re-established the rotary engine development team, and we know that our DNA is in sports cars, so I would never say we gave it up.”

The Vision X Coupe’s plug-in hybrid setup pairs a turbocharged rotary engine with an electric motor for a combined 503 hp (375 kW / 510 PS) and includes carbon-capture technology. By contrast, the Iconic SP’s range-extender system produced 365 hp (272 kW / 370 PS).

More: Over 9,500 People Wanted This Special Miata, 9,300 Missed Out

Mazda’s next step is to cut emissions from the rotary engine further, which could eventually allow it to drive the wheels directly rather than serving solely as a generator. Engineers estimate this evolution will take another “two to three years” of development.

Will the Next MX-5 Carry the Torch?

While Mazda’s design and engineering teams work toward reviving the rotary legacy, the brand’s future in sports cars looks brighter than it has in years.

Alongside the potential RX successor, Mazda has confirmed that the next-generation MX-5 roadster will arrive later this decade. The upcoming Miata will stay true to its lightweight spirit, equipped with a larger-displacement SkyActiv Z engine and, reassuringly, a manual gearbox.

Source: Autocar

For years, many traditional carmakers seemed content to ignore the quiet storm gathering in China’s automotive sector. The rise of new Chinese manufacturers barely registered on their radar, as if the disruption that had shaken the tech world could never reach the showroom floor.

Read: Ford Chief Says China Leads US By 10 Years In EV Batteries, Needs Their IP

That illusion has now been thoroughly dispelled. Most major automakers now grasp the scale of disruption these Chinese brands are set to bring to the global car market, and among the most outspoken voices acknowledging it is Ford’s chief executive, Jim Farley

Over the past year, Farley has been quite outspoken in his belief that Chinese brands have developed a significant lead in the electrification race.

How Big Is The Threat?

At one point, he was even driving a Xiaomi SU7 every day, not as a stunt but out of genuine admiration. For Farley, the challenge from China eclipses even the Japanese surge of the early 1980s.

“I think it’s exactly the same thing, but it’s on steroids,” Farley told Business Insider. “They have enough capacity in China with existing factories to serve the entire North American market, put us all out of business. Japan never had that. So, this is a completely different level of risk for our industry.”

In 1980, Japan produced over 11 million vehicles, a surge that prompted then-President Ronald Reagan to impose voluntary export limits on Japanese imports. Today, the circumstances are different but the unease feels familiar.

Chinese EVs are currently barred from sale in the United States, insulating local brands for the moment. Yet Ford, operating on a global stage, can’t rely on geography for protection.

The Chinese Tech Advantage

“[The Chinese] have far superior in-vehicle technology. Huawei and Xiaomi are in every car. You get in, you don’t have to pair your phone. Automatically, your whole digital life is mirrored in the car,” Farley added.

“We are in a global competition with China, and it’s not just EVs. If we lose this, we do not have a future Ford. The Chinese are the 700-pound gorilla in the EV industry. It is completely dominating the EV landscape globally and more and more outside of China.”

For now, Trump-era regulations, including the removal of the federal EV tax credit worth up to $7,500, have impacted demand for electric vehicles in the United States.

Still, Farley sees the slowdown as temporary. He expects EVs to hold about 5 percent of the U.S. market in the short term but believes that number will rise as lower-cost models reach production and public perception catches up with the technology.

During a recent visit to Japan, it became clear that while the country is renowned worldwide for its robotics and manufacturing excellence, the...

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