Nissan’s plans Stay away from EVs In the US, it will have ramifications for domestic manufacturing. The Japanese automaker has confirmed it is abandoning plans to build electric vehicles at its Canton, Mississippi plant.
In statement for Automotive Newsthe company said it was scrapping its EV strategy to “better align with market conditions, customer demand and Nissan’s renewed strategy.” Production in Canton includes hybrids and conventional gas-powered vehicles, including a frame Xterra SUV (by 2028) as well as the new Frontier and three other models.
In 2021, Nissan outlined its Ambition 2030 strategy, which involves revamping the Canton plant to produce electric vehicles and batteries, including the high-end Infiniti models. It hoped to sell 200,000 EVs in the US by 2028, but so far aria state ( Leaf crossover mainly made in Great Britain). In 2025, it canceled the Aria and two sedans.
Why is Nissan stopping EV production in the US?
Tax credits and the hybrid pivot are to blame
The US EV market for many manufacturers is both a a broader affordability crisis and the end of the $7,500 federal tax credit. Nissan was one of the hardest hit. In the first quarter of 2026, its American sales fell 89 percent year-over-year to just 724 vehicles. Nissan doesn’t have a significant audience for purely electric vehicles, especially now that its lone SUV model is gone.
Nissan is also in the midst of a turnaround around its overall auto business, which has been unable to keep up with its rivals. As part of this, the company is focusing its energy on hybrids 2027 Rogue e-POWER and the plug-in hybrid revival of the Pathfinder (aka Terrano). These offer some of the efficiency and environmental benefits of EVs, but cost less and eliminate range concerns.
Nissan is not alone
Nissan isn’t the only brand recalling its EV plans in the US. Domestic manufacturers such as Ford and GM have scaled back their electrified lineups, and Volkswagen recently ID.4 ceased production in favor of Atlas at its Chattanooga, Tennessee facility. All of these companies have said they are still committed to electric cars, but a revival is not expected in the near term.
Source: Automotive News
