Nissan has abandoned plans to produce electric vehicles at its factory in Canton, Mississippi, according to a report by Nikkei, marking a major reversal in the company’s U.S. electrification strategy.
Nissan North America confirmed that the automaker had discontinued the project following a strategic review, citing a sharp slowdown in U.S. electric vehicle demand after government EV incentives expired.
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The company had already suspended production of a new model year of the Japan-built Nissan Ariya for the U.S. market due to current market conditions.
Nissan originally planned to begin production of two battery-electric crossover SUVs at the Canton facility from 2028 onward. One model was intended for the Nissan brand and the other for premium division Infiniti.
The automaker had earlier reduced the scope of the project. In 2025, Nissan scrapped plans for two battery-electric sedans — one under the Nissan brand and another for Infiniti — while a smaller electric SUV programme was also canceled.
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Plans for EV production at the Mississippi site were first delayed in July last year as Nissan assessed market conditions after the expiration of federal incentives. The project was then placed on temporary hold in October before being fully canceled.
Instead of building electric vehicles in the United States, Nissan will now supply the market with imported EVs, including the next-generation Nissan Leaf.
Meanwhile, the Canton plant is expected to increase production of conventional gasoline-powered vehicles as demand for internal combustion engine models strengthens in the U.S. market.
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The decision reflects broader challenges facing automakers in North America, where slower-than-expected EV adoption and shifting government policies have led several manufacturers to reconsider or delay electric vehicle investments.