Nissan’s plans for move away from electric vehicles in the United States will have consequences for its manufacturing in the country. The Japanese automaker has confirmed that it will abandon its plans to make electric cars at its plant in Canton, Mississippi.
In a statement to Automotive newsthe company said it was scrapping the electric vehicle strategy to “better align with market conditions, customer demand and Nissan’s updated strategy.” Instead, production in Canton will focus on hybrid and conventional gas-engine vehicles, including a Body-on-frame Xterra SUV (scheduled for 2028), as well as a new Frontier and three other models.
In 2021, Nissan outlined an Ambition 2030 strategy that would supposedly modernize the Canton plant for manufacturing electric vehicles and batteries, including luxury Infiniti models. It expected to sell 200,000 electric vehicles in the US by 2028, but only made the aria in the United States (the Leaf crossing It is mainly manufactured in the United Kingdom). Canceled the Ariya and two sedans in 2025.
Why Nissan is ending electric vehicle production in the US
Tax credits and a hybrid pivot are to blame
The US electric vehicle market has been difficult for many manufacturers due to both a broader affordability crisis and the end of the $7,500 federal tax credit. Nissan has been one of the most affected. In the first quarter of 2026, its US sales fell 89 percent year over year to just 724 cars. There simply isn’t a significant audience for Nissan’s purely electric cars, especially now that its only SUV model is no more.
Nissan is also about to turn around an overall auto business that has struggled to keep up with its competitors. As part of this, the company is investing its energy in hybrids like the 2027 Rogue e-POWER and a plug-in hybrid revival of the Pathfinder (aka Terrano). These offer some of the environmental and efficiency benefits of electric vehicles, but cost less and eliminate range anxiety.
Nissan is not alone
Nissan is not the only brand that is reducing its electric vehicle plans in the United States. Domestic manufacturers such as Ford and GM have reduced their electrified product lines, while Volkswagen recently stopped production of ID.4 at its facilities in Chattanooga, Tennessee, in favor of the Atlas. All of these companies have said they are still committed to electric vehicles, but revivals are not expected any time soon.
Fountain: Automotive news
