Subaru’s big EV incentives have helped boost sales, but they’re quickly taking a toll on the company’s profits.
Subaru spends big to sell new EVs in the US
Subaru now sells three electric SUVs in the US, including the updated Solterra, the Uncharted, and Trailseeker.
While the two new electric SUVs, the Uncharted and Trailseeker, have helped boost overall EV sales, they are taking a big hit on Subaru’s profits.
Between the three, Subaru has sold 11,638 electric vehicles through July. While Solterra sales are down 34% this year (5,275), the Uncharted (2,850) and Trailseeker (3,513) have led to a higher overall total.
After reporting fiscal first-quarter earnings on Wednesday, Subaru said incentive spending resulted in a ¥24.9 billion ($155 million) hit to profits.
According to new data from Motor Intelligence (via Automotive News), Subaru’s marketing costs per vehicle rose 40% to $2,698.
Incentives on gas-powered cars, including the BRZ, Outback, and Legacy, increased 27% on average, while truck spending rose 49%.
Average spending on EVs was considerably higher. Subaru spent $9,650 for the Solterra, $9,155 for the Uncharted, and $8,982 for the Trailseeker on average. In comparison, average spending on the Outback was just $3,036.
Subaru’s overall incentives were still lower than the average of $3,479, but its 40% increase significantly outpaced the market, which rose 4.4%.
Higher spending led to a 44% drop in Subaru’s operating profit, which totaled ¥42.6 billion ($270 million) in the fiscal first quarter.
Subaru’s electric SUVs share a platform and are developed in partnership with Toyota. Toyota also sells three electric SUVs in the US, including the new bZ, C-HR, and bZ Woodland.
While Solterra sales have slipped this year, the Toyota bZ is among the top-selling EVs in the US. In the first half of the year, the bZ was the fourth-most-popular EV, with sales up 90% year-over-year. Average spending for the Toyota bZ fell 7.6% to $8,588 per vehicle.
Ready to take advantage of the incentives? You can use the links below to find available Subaru EVs in your area.
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