Nissan’s plans to shift away from EVs in the U.S. will have consequences for its manufacturing in the country. The Japanese automaker has confirmed that it’s dropping plans to make electric cars at its Canton, Mississippi plant.
In a statement to Automotive News, the company said it was scrapping the EV strategy to “better align with market conditions, customer demand, and Nissan’s updated strategy.” Production at Canton will instead focus on hybrids and conventional gas engine vehicles, including a body-on-frame Xterra SUV (due by 2028) as well as a new Frontier and three other models.
In 2021, Nissan outlined an Ambition 2030 strategy that was supposed to revamp the Canton plant for manufacturing EVs and batteries, including for upscale Infiniti models. It hoped to sell 200,000 EVs in the U.S. by 2028, but only ever made the Ariya stateside (the Leaf crossover is primarily made in the U.K.). It canceled the Ariya and two sedans in 2025.
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Why Nissan is ending EV production in the US
Tax credits and a hybrid pivot are to blame
The U.S. EV 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 hardest hit. In the first quarter of 2026, its American sales plunged 89 percent year-over-year to just 724 cars. There just isn’t a significant audience for Nissan’s pure electric cars, especially now that its lone SUV model is gone.
Nissan is also in the middle of turning around an overall car business that has struggled to keep up with competitors. 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 EVs, but cost less and eliminate range anxiety.
Nissan isn’t alone
Nissan isn’t the only marque dialing back its EV plans in the States. Domestic manufacturers like Ford and GM have shrunk their electrified lineups, while Volkswagen recently halted ID.4 production at its Chattanooga, Tennessee facility in favor of the Atlas. All of these companies have said they’re still committed to EVs, but revivals aren’t expected in the near term.
Source: Automotive News
Stephan is the sports journalist for the Maple Grove Report.
