Japan's auto giants are hedging their bets on the future of transportation, pressing ahead with developing cars that run on cleaner fuels even as the momentum builds globally around switching to electric instead.

"The world is moving toward electric vehicles, there’s no doubt there,” Tomomi Nakamura, Subaru Corp.’s president, said at the Suzuka race circuit east of Osaka on Saturday. "But is it going to be a world of only EVs? No one can answer that question right now.”

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