Nissan has reportedly halted development of a battery-electric version of its Qashqai SUV, casting uncertainty over one of the three electric vehicle programs previously planned for the company’s Sunderland manufacturing facility in the United Kingdom.
According to a Reuters report citing six sources familiar with the matter, development of the all-electric Qashqai was suspended in early 2025 as Nissan reassessed its electrification strategy amid changing market conditions in Europe.
Nissan declined to comment specifically on the reported cancellation but reiterated its commitment to expanding its electrified vehicle lineup, including both battery-electric and hybrid models.
Best-Selling Model Affected
The Qashqai is Nissan’s top-selling vehicle in Europe and accounted for approximately 45% of the company’s European sales of around 330,000 vehicles in 2025, according to Reuters.
The compact SUV is currently offered with petrol and hybrid powertrains but has not yet received a battery-electric variant.
Industry observers view the reported decision as significant, given the importance of the Qashqai to Nissan’s European business and the growing competition in the electric SUV segment.
Sunderland EV Plans Face Changes
In late 2023, Nissan announced plans to transform its Sunderland facility into a major electric vehicle production hub.
The strategy included production of three electric model lines: a successor to the Leaf, an electric Juke, and an electric Qashqai. Combined with battery production and supporting infrastructure, the initiative represented a planned investment of up to £2 billion.
While the next-generation Leaf has entered production and the recently unveiled electric Juke remains scheduled for Sunderland production, the future of the electric Qashqai now appears uncertain.
Reuters reported that Nissan is expected to provide an updated roadmap for the Sunderland plant in the coming months and is currently in discussions with the UK government regarding potential financial support.
Shift Toward Hybrid Vehicles
Nissan cited what it described as significant volatility in European electric vehicle demand and the need for a balanced electrification strategy.
Company documents presented during its latest annual general meeting indicate Nissan believes the pace of electrification has slowed in Europe and the United States, prompting a greater emphasis on hybrid technologies alongside battery-electric vehicles.
Under its ongoing “Re” restructuring program, Nissan aims to reduce its global vehicle lineup from 56 models to 45 and cut the number of manufacturing plants worldwide from 17 to 10 by the end of fiscal year 2027.
The company has already taken similar steps elsewhere. In May, Nissan confirmed it had cancelled plans for two battery-electric SUVs intended for production at its Canton, Mississippi facility and instead shifted focus toward hybrid vehicle production.
Broader Impact on Supply Chain
The reported pause also affects suppliers linked to Sunderland’s planned EV ecosystem.
Nissan subsidiary Jatco has withdrawn plans to establish production of integrated electric drive systems at the site, a project that would have marked the supplier’s first manufacturing operation in Europe, according to Reuters.
At the same time, Nissan has announced plans to consolidate two production lines at Sunderland into a single, more efficient line. The company said the move is intended to improve utilization rather than reduce overall production capacity.
The unused production line could potentially support contract manufacturing projects in the future, following a non-binding memorandum of understanding signed with Chinese automaker Chery earlier this year.
If the electric Qashqai project is eventually revived, Reuters reported that the model is unlikely to reach the market before the early 2030s, reflecting the broader strategic and market challenges currently facing global automakers as they balance electric vehicle investments with evolving consumer demand.