Big decision

Subaru made a big decision not to produce Plug-in Hybrid Vehicle (PHV). There are several reasons why the Japanese company decided. First of all, the market of PHV is not big and the company could not sell PHVs well. According to the data of research companies, only 2% of the automotive market is PHV. In addition, Subaru sold only 2,600 PHVs in 2021. Automotive companies need tons of money, time, equipment and human resources to design, develop and produce a new vehicle. Also, to sell it in the market is another issue.

To get matters worse, the automotive industry is facing an important issue, which is electrification. In order to adapt this new trend, automotive companies invest a lot of money in it. Subaru is without exception. The Japanese company will invest about 250 billion JPY to develop and manufacture Electric Vehicles (EVs). In fact, the company is planning to establish a new EV factory in Japan, and it will operate by 2027. Now, Subaru makes a partnership with Toyota to develop and produce EVs. However, many experts predict that it will do by itself in the future. In this sense, the decision that the company stops manufacturing PHVs does make sense.

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