The decision is aimed at reducing the cost of developing clean-energy vehicles and is a response to weak sales of plug-in hybrids, which only accounted for 2% of the global auto market last year, according to S&P Global. The move is in line with the trend among other automakers to concentrate their resources on a smaller number of platforms to lower the cost of transitioning to cleaner-running vehicles.
As part of this shift, Subaru will no longer offer the plug-in hybrid version of the Crosstrek SUV starting next year. Sales of the plug-in Crosstrek have been sluggish, with only 2,600 units sold in the U.S. last year, less than 1% of Subaru's unit sales in the country, according to data from auto research specialist MarkLines.
Subaru Crosstek
Going forward, Subaru plans to invest 250 billion yen ($1.8 billion) in the development and production of electric vehicles over the next five years, with a goal of building an EV factory in Gunma, north of Tokyo, by 2027. Currently, Subaru's EV offerings are developed in partnership with Toyota, which owns a 20% stake in the company. However, Subaru is likely to develop EVs on its own going forward.
In addition to focusing on EVs, Subaru will also take advantage of its partnership with Toyota to release new hybrid models around 2025. For automakers, one of the main challenges with PHVs is that they require a battery with a large capacity and output level, making them expensive to develop.
Source: Nikkei
