Nissan Motor has canceled its plans to manufacture two new electric vehicles at its Canton plant in Mississippi, which was initially scheduled to begin in late 2028 or early 2029. Instead, the company will explore the possibility of producing hybrid SUVs at the facility starting in 2028.
Nissan had previously pushed back its original timeline to start EV production at the plant in 2028 by as much as a year, due to weakening demand. In April, it rescheduled the release of two electric crossovers—the PZ1K and PZ1J—for 2028, while also dropping plans for two electric sedans and a compact electric SUV that were under development.
The decision came after the rollback of the federal tax credit for certain EV purchases in the U.S., leading Nissan to halt its EV production in the country.
Despite halting domestic EV production, Nissan will continue to offer electric vehicles in the U.S., notably the Nissan Leaf, which is manufactured in Japan.
The company aims to expand exports of the Leaf to strengthen its EV presence in the American market. Additionally, it will continue selling the Nissan Ariya in North America from the 2025 model year, although it has decided against investing in a 2026 model due to uncertain demand.
Nissan now anticipates greater growth for hybrids and internal combustion engine (ICE) vehicles in the U.S. market over the next few years and is shifting focus toward hybrid models.
Meanwhile, Christian Meunier, chairman of Nissan Americas, told Bloomberg that the Nissan Xterra—an off-road hybrid SUV—is set to return. Though a precise timeline hasn’t been revealed, Meunier confirmed the model is expected to make a comeback around 2028. The revived Xterra will be manufactured at Nissan’s Canton plant and will feature a hybrid V-6 powertrain.
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