Nissan is pressing pause on its plans to manufacture electric vehicles (EVs) in the United States. The decision follows the Trump administration’s move to eliminate the $7,500 federal EV tax credit on September 30, becoming the latest automaker to rethink its electrification strategy in the U.S.
Shift in Strategy at Canton Plant
The Japanese automaker confirmed last week it will suspend preparations to build two electric SUVs at its Canton, Mississippi facility—one under the Nissan brand and the other for its luxury marque, Infiniti. Both models were previously scheduled for production in late 2028 or early 2029, following a delay announced earlier this year. Suppliers have now been told to halt related projects.
Instead, Nissan is evaluating the potential to produce hybrid SUVs at the same plant by 2028, reflecting a growing belief that hybrids and internal combustion vehicles will remain more viable in the U.S. market through the decade.
“Nissan is responding to evolving consumer preferences and market conditions,” said a company spokesperson. “We continue to believe in electrification, but the pace and mix will vary by region.”
Focus Shifts to Hybrids and Global EV Exports
While Nissan has shelved U.S. EV production, it will continue selling electric models in North America. The next-generation Nissan Leaf—produced in Japan’s Tochigi Prefecture—will remain available to American customers, while the Ariya crossover will continue to be imported for now.
In the longer term, Nissan plans to lean on hybrid technology to bridge the transition toward full electrification. Hybrid vehicles, which combine gasoline engines with electric motors and have seen a resurgence in many markets.
Industry Trend: Back to Hybrids
Nissan’s move mirrors a broader recalibration across the automotive industry. Several automakers seen booming hybrid sales in 2025, with many of these brands reconsidering electrification timelines amid tightening margins and uncertain U.S. policy support.
In Canada, hybrids are surging as well, capturing a record share of new registrations in Q2 2025, while the pace of EV adoption slowed despite higher overall sales volumes.
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