Subaru's costly EV incentives slash operating profit

Subaru increased its U.S. marketing and incentive spending for its three electric SUVs – the Solterra, Uncharted and Trailseeker – to roughly $9,650, $9,155 and $8,982 per vehicle respectively. Overall incentive outlays rose 40% to $2,698 per EV, adding a ¥24.9 bn ($155 m) hit to the automaker’s earnings.

The higher costs contributed to a 44% drop in operating profit for the fiscal first quarter, falling to ¥42.6 bn ($270 m). Through July the company sold 11,638 EVs in the United States, with Solterra sales down 34% year‑to‑date, while Uncharted and Trailseeker accounted for about 2,850 and 3,513 units. Total U.S. EV sales from January to June were 10,064 units, against a 4.5% decline in overall U.S. sales.

Subaru’s strategy aims to boost its EV presence, but the steep marketing spend has not yet translated into proportional sales growth, putting pressure on profitability.