Subaru Corp. will stop selling diesel cars by around 2020 to focus on electric vehicle development, sources said Thursday.
Tokyo-based Subaru offers its diesel Forester and Outback models in Europe and Australia. The 15,000 diesel cars it sells annually account for roughly 1.5 percent of its total global sales.
The automaker plans to strengthen its plug-in hybrid and EV development plans in order to start U.S. sales of plug-ins in 2018 and EVs in 2021.
Automakers are shifting toward low-emission vehicles more than ever as emissions regulations tighten across the globe. The British and French governments say they plan to ban sales of gasoline and diesel vehicles by 2040.
Last month, Toyota Motor Corp. and Mazda Motor Corp. said they will form a capital tie-up to strengthen cooperation in EV development.