Nissan Motor Co. pauses development plans for two battery-powered sedans while expanding its EV lineup to five vehicles in the United States, the Japanese automaker said on Tuesday. The company’s new lineup for the U.S. also includes battery-powered crossover SUVs. “We are adjusting the timeline for the introduction of these five new models to ensure we bring the vehicles to the market at the right time,” as per a Nissan spokesperson.
Nissan pauses EV plan
Nissan has announced a temporary delay to its expansion and development production plans for electric vehicles (EVs) in the U.S., the two battery-powered sedans slated for launch in 2027, to prioritize more SUV models.
While Nissan’s electric sedans are still in the production plan, the company expects the SUVs to be rolled out faster than its sedans.
The company also said its Canton, Mississippi factory would support manufacturing of its next-generation vehicles.
Nissan EV production
In March, Nissan had laid out plans to accelerate its EV transition around the globe, including seven new models to be sold in the United States by 2026 and an EV manufacturing hub in the country.
Automotive News first reported that Nissan had paused U.S. production plans for its first next-generation electric vehicles.
Nissan’s strategic shift
Nissan aims to introduce a fifth electric vehicle at its Canton plant a compact crossover akin in size to the current Nissan Rogue. Presently, the Canton facility manufactures three Nissan models: the Titan, Altima sedan, and Frontier. However, as per current plans, the Titan will cease production in the summer, and the Altima in 2025.
This strategic shift comes amidst dwindling demand for electric cars, prompting manufacturers to reassess their production plans. Nissan’s Canton factory will pivot to support the manufacturing of their next-generation vehicles.
Nissan EV demand
The announcement comes as weaker-than-expected EV demand prompts global automakers to pull back from their ambitious electrification plans to focus on hybrids and gas-powered models instead.
Additionally, demand for crossover SUVs and pickup trucks has outweighed sedans and other vehicle formats over the past few years, as Americans prefer the convenience offered from those platforms.
Nissan stock
Nissan stock saw a minor decline in Tuesday’s trading session on the Tokyo Stock Exchange, indicative of broader challenges facing the automotive industry.
