Subaru (TYO:7270) will scale back investments in electric vehicles and channel more funds toward hybrids under a revised 1.5 trillion yen growth plan, Nikkei reported Tuesday, citing President Atsushi Osaki at an earnings briefing.

The automaker has invested 300 billion yen so far and will review the remaining 1.2 trillion yen, with increased spending on hybrids and gasoline-powered models. Plans to launch four electric SUVs with Toyota by 2026 remain intact, though Subaru may delay four in-house EVs planned by 2028, according to the report.

The move follows waning global EV demand and the end of U.S. tax incentives, the report said.

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