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Business trends

Subaru to withdraw from diesel cars by fiscal 2020

Japanese automaker shifting focus to electric vehicles

  © Reuters

TOKYO -- Japanese automaker Subaru is set to withdraw from production and sales of diesel cars, which the company currently sells in Europe and Australia, by the fiscal year 2020, sources said.

The company will focus its shift to electric vehicles amid a global trend of environmental regulation. France and the U.K. have decided to ban diesel car sales by 2040.

Subaru believes it would be difficult to develop a new diesel engine that would meet European standards.

The company currently exports the Outback and Forester diesel models, both SUVs, from its plant in Gunma Prefecture, north of Tokyo. Last year it sold some 15,000 units, which accounted for around 1.5% of its global sales.

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