Nissan to scrap U.S. EV production plan amid slowing demand

NEW YORK/TOKYO — Nissan Motor Co said Friday it will scrap its plan to produce electric vehicles in the United States as demand is slowing, partly due to the end of a tax break on EV purchases in the country.

The Japanese automaker "remains fully committed to the U.S. as a lead market and a foundation for stable returns and sustained growth," its official said.

Nissan explained to U.S. auto parts suppliers that it would cancel the planned output of EV vehicles at a plant in Canton, Mississippi, and instead increase production of other models there.

The carmaker's production strategy in the United States, which centered on multiple EV models, has stagnated due to delays in development.

The company, which had planned to produce multiple EV models at the plant, said last year that it would give up producing a compact EV.

At a briefing on its long-term vision in April, Nissan said it would take a flexible approach to EV investment in the United States while closely monitoring demand trends and policy changes.

The company plans to narrow down its lineup while offering multiple powertrain options, such as hybrid vehicles, to boost competitiveness, a move that could affect its production plans.

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