Nissan drops plans to make EVs in the US—here’s why
Nissan’s plans to abandon electric vehicles in the United States will impact its manufacturing in the country. The Japanese automaker has confirmed it is abandoning plans to make electric cars at its Canton, Mississippi, plant.
In a statement to Automotive Newsthe company announced it was abandoning the EV strategy to “better align with market conditions, customer demand and Nissan’s updated strategy.” Production in Canton will instead focus on hybrid and conventional gasoline-powered vehicles, including a body-on-frame Xterra SUV (expected by 2028), as well as a new Frontier and three other models.
In 2021, Nissan presented an Ambition 2030 strategy meant to revamp the Guangzhou plant to make electric vehicles and batteries, including for high-end Infiniti models. The company hoped to sell 200,000 electric vehicles in the United States by 2028, but only made the Ariya in the United States (the Leaf crossover is primarily made in the United Kingdom). It canceled the Ariya and two sedans in 2025.
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Why Nissan is ending electric vehicle production in the United States
Tax credits and the hybrid pivot are to blame
The U.S. electric vehicle market has been tough for many manufacturers due to both 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 sales in the United States plunged 89% year-on-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 gone.
Nissan is also turning around a global auto business that has struggled to keep pace with rivals. As part of this, the company is pouring its energy into hybrids like the 2027 Rogue e-POWER and a plug-in hybrid revival of the Pathfinder (aka Terrano). These offer some of the efficiency and environmental benefits of electric vehicles, but cost less and eliminate range anxiety.
Nissan is not alone
Nissan is not the only brand to reconsider its electric vehicle plans in the United States. Domestic automakers like Ford and GM have been scaling back their electrified lineups, while Volkswagen recently stopped production of the ID.4 at its Chattanooga, Tennessee, plant in favor of the Atlas. All of these companies have said they remain committed to electric vehicles, but no revival is expected in the near term.
Source: Automotive News
