Subaru to drop petrol cars in Europe, go EV-only by 2028

Subaru sold just 23,000 vehicles in Europe in the financial year ended March — under 3% of its 890,000 global sales — and that number now explains its product strategy. Nikkei Asia reported the Japanese carmaker plans to stop selling petrol cars in Europe and offer only electric vehicles there from as early as 2028.

The company is expected to begin reducing petrol model sales next year, according to the report. Remaining combustion vehicles would be sold until current stock runs out.

Which models are affected?

The withdrawal would hit Subaru's boxer-engine models, including the Forester and Crosstrek SUVs. Subaru does not currently offer full-hybrid vehicles in Europe, though it sells them in Japan and some other markets. That leaves the brand with little middle ground between petrol and battery-electric.

Subaru has reportedly concluded the engineering investment required to meet tougher European emissions rules would be out of proportion to its limited sales in the region. That is a rare explicit admission: the compliance math no longer works for a niche player.

The claim deserves scrutiny. Nothing in the report specifies how many EV models Subaru would field in Europe, or where they would be built. An EV-only line-up by 2028 requires products that, so far, do not exist on a confirmed timeline.

What does Euro 7 change?

The EU's latest emissions regime, Euro 7, is due to cover all new cars from November 2027, including models already on the market. It retains most Euro 6 limits for cars but tightens rules in several areas:

• Stricter heavy-duty standards
• Brake and tyre-wear limits
• Battery durability requirements
• Lifetime monitoring systems

Separate carbon dioxide requirements are set to tighten in 2030, adding pressure on manufacturers to raise EV sales. For Subaru, staying in petrol beyond 2027 would mean re-engineering low-volume models for a market that barely registers in its accounts.

Is the European EV market ready?

EV sales in Europe have picked up after a period of slower growth. Data from the European Automobile Manufacturers' Association, cited in the Nikkei report, showed regional EV sales rose 60% year on year in September. EVs made up 31% of vehicle sales that month, compared with 18% for petrol cars and 34% for hybrids.

The market signal is real. Whether Subaru can secure competitive EV product in time is a separate question.

What is Subaru's EV track record?

The record invites caution. In May, Subaru announced it was postponing the launch of four in-house developed battery electric models that were scheduled to arrive by 2028 — the same year it now reportedly intends to go EV-only in Europe. Then in July, it recalled 541,237 vehicles in the US after an incorrect Gross Axle Weight Rating was listed on the certification label during manufacturing.

A company delaying its core EV programme while promising an EV-only market is asking for trust it has not yet earned. The Nikkei report is unconfirmed by Subaru, and no plant, capacity or supplier details have been disclosed.

Watch for three things: an official Subaru confirmation, the identity and production site of the EVs intended for Europe, and whether the petrol wind-down actually starts next year as reported.