Nissan drops US EV production plan amid slowing demand

Nissan Motor Co. has announced it will abandon its plan to produce electric vehicles in the United States, citing slowing demand and the end of a tax incentive on EV purchases.

The Japanese automaker said it “remains fully committed to the U.S. as a lead market and a foundation for stable returns and sustained growth,” according to an official statement, News.Az reports, citing Kyodo.

Nissan informed U.S. auto parts suppliers that it would cancel planned electric vehicle production at its plant in Canton, Mississippi. Instead, the company will increase output of other vehicle models at the facility.

The decision comes as the company’s U.S. EV production strategy—originally built around multiple electric models—has stalled due to delays in development.

Nissan had previously already decided to drop plans to produce a compact EV at the site.

At an April briefing on its long-term strategy, the company said it would take a more flexible approach to EV investment in the U.S., closely tracking demand trends and policy changes.

The automaker also plans to streamline its lineup while expanding the use of multiple powertrain options, including hybrid vehicles, in an effort to improve competitiveness. This shift could further influence its production plans in the U.S. market.

Overall, Nissan’s move reflects a broader reassessment of its electrification strategy amid changing market conditions and evolving government incentives.

News.Az 

By Nijat Babayev