Japanese automaker Subaru will completely stop selling internal combustion engine cars in the European market by the end of 2027. The decision is aimed at responding to tightening European Union environmental regulations, and it plans to sell only electric vehicles from 2028.

Electrek reported on Oct. 20 that Subaru's German unit said it will phase out internal combustion engine vehicle sales in Europe. It cited the EU's carbon dioxide emissions rules and regulations related to driver-assistance systems as the backdrop.

The first model to be discontinued is Subaru's flagship wagon, the Outback. The Outback will end sales in the European market at the end of this year. The Impreza, Crosstrek and Forester will then stop selling in 2027. These three models are equipped with a mild hybrid system based on a 2.0-litre horizontally opposed boxer engine.

As a result, Subaru vehicles sold in Europe from 2028 will be reshaped into three EV models: Solterra, E-Outback and Uncharted. All are co-developed with Toyota and share platforms with the Toyota bZ4X, bZ4X Touring and C-HR+ respectively.

Subaru left open the possibility of introducing full hybrid vehicles in Europe in the future, but did not announce specific launch plans.

The decision applies only to Europe. In the United States, it will continue selling 2.5-litre full hybrid models of the Crosstrek and Forester. It also plans to expand its EV lineup from Solterra, Uncharted and Trailseeker to include a three-row electric SUV, the Getaway, next year.

Subaru is also moving to secure its own EV technology. It recently unveiled a dedicated EV platform, new batteries and motors, and an integrated control unit that supports wireless updates.

In particular, an Outback-based test vehicle applying the new technology is equipped with an all-wheel-drive system with maximum output of 509 horsepower. Subaru said it can reach 100 km per hour from a standstill in less than 4 seconds.

Subaru plans to apply some of the new technologies to mass-produced vehicles from around 2029. Its strategy is to reshape its business around EVs in the European market while strengthening the competitiveness of its proprietary electrification technology.