Nissan Delays EV Expansion Plans in US

Nissan has announced a temporary halt to its expansion and development plans for electric vehicles (EVs) in the United States, specifically pausing progress on two battery-powered sedans slated for launch in 2027, to prioritize more SUV models.

"We are adjusting the timeline to ensure that we bring the vehicles to the market at the right time," the company stated.

Nissan aims to introduce a fifth electric vehicle at its Canton plant—a compact crossover akin in size to the current Nissan Rogue. Presently, the Canton facility manufactures three Nissan models: the Titan, Altima sedan, and Frontier. However, as per current plans, the Titan will cease production in the summer, and the Altima in 2025.

This strategic shift comes amidst dwindling demand for electric cars, prompting manufacturers to reassess their production plans. Nissan's Canton factory will pivot to support the manufacturing of their next-generation vehicles. The company's stock saw a minor decline in Tuesday's trading session on the Tokyo Stock Exchange, indicative of broader challenges facing the automotive industry.

Nissan's move echoes recent sentiments expressed by other major automakers. Earlier in May, Mercedes-Benz revised its strategic plan, acknowledging that it won't solely focus on electric vehicles by 2030, contrary to initial projections. "We will continue producing hybrid and combustion engine vehicles well into the 2030s, if there is demand”, said Ola Källenius, CEO, Mercedes-Benz.

Similarly, Lamborghini's CEO, Stephan Winkelmann, postponed the company's electrification plans, citing them as premature. These adjustments highlight a broader industry trend where automakers are adapting their strategies to meet evolving market dynamics.