Nissan cancels all-electric plans at its Mississippi plant and pivots to hybrid powertrains as Trump-era EV tax credit removal collapses US demand

Nissan has confirmed the cancellation of its plans to produce two electric SUV models at its Canton, Mississippi manufacturing plant, citing the collapse in US demand for BEVs (battery-electric vehicles) following the removal of the $7,500 federal consumer EV tax credit in September 2025. The North American subsidiary confirmed the decision to dealers and suppliers on 1 May 2026. The company had originally committed to launching four all-new electric models at Canton by 2028 — a figure subsequently cut to two — before pushing back the launch timeline and ultimately abandoning the programme entirely. In place of the electric programme, Nissan will expand production of conventional and hybrid powertrains at the site, anchored by a V6-powered hybrid version of the revived Xterra SUV and its proprietary e-Power series hybrid technology. The policy context is stark. US BEV (battery-electric vehicle) market share fell from a record 10.6% in Q3 2025 to around 5.8% in Q1 2026, a collapse directly attributable to the loss of the federal credit. Trump-era import tariffs — including a 15% levy on Nissan's Japan-built Ariya EV — have simultaneously rendered imported electric models commercially unviable. The Nissan Leaf, manufactured in the UK and exported to the US, is being retained as a sub-$30,000 entry-level import. The decision sits within Nissan's wider Re:Nissan restructuring, which targets a reduction in global manufacturing footprint from 17 to 10 sites by 2027. Canton is not among the seven facilities scheduled for closure, but a previously flagged plant retooling investment has now been redirected. Supplier consolidation under Re:Nissan is targeting a 70% reduction in parts complexity, bearing down on the local Mississippi supply chain regardless of the electrification reversal.