Nissan Delays Electric Sedan Production and Reevaluates Strategy
Nissan, like many other automakers, is reevaluating its plans and investments in battery-electric vehicles (EVs). The company has recently sent a memo to suppliers, requesting them to halt development activities related to the electric sedans until further notice. Originally, Nissan had planned to begin production of a Nissan-branded battery-electric sedan in 2025, followed by an Infiniti version. However, this is the second delay in the timeline, with the new production date now set for November 2026.
The delay also affects a promised $500 million investment in the Canton, Miss., plant, which was intended to transform it into Nissan’s hub for EV production in the United States. Currently, the Canton plant produces three vehicles: the Altima, Frontier, and Titan. The plant has an annual production capacity of 410,000 units, but projections for the current financial year suggest that only around 210,000 units will be assembled. This decrease is partly due to the discontinuation of the Titan pickup production this summer.
Instead of prioritizing sedan production, Nissan is reportedly considering moving up the production of two or three crossovers. Initially scheduled for 2028, two midsize crossovers could roll off the assembly lines earlier than anticipated. Additionally, a fifth model, likely to be a third electric crossover called PZ1L, will be added to the lineup. The new range of vehicles will focus on shared parts and modularity in components and manufacturing processes.
The decision to delay the sedan production comes as EV sales continue to grow, albeit at a slower pace than in previous years. According to Cox Automotive data, EV sales saw a 2.6% increase in Q1 of this year compared to a 46% jump in Q1 of 2023. Nevertheless, Nissan performed relatively well in Q1, with its sales up by 7% compared to the same period last year.
Nissan aims to commence the assembly of its electric sedan in November 2026, with the Infiniti version following in April 2027. The company plans to inform suppliers of this new direction next month. However, some suppliers remain skeptical and believe it may take another six to eight months before Nissan finalizes its plans. The uncertainty surrounding the presidential election outcome may also play a role in the automaker’s cautious approach to long-term commitments.
In conclusion, Nissan’s decision to delay electric sedan production reflects the evolving landscape of the EV market. The company recognizes the need to reassess and adapt its strategy to ensure timely market entry with the right products. By focusing on crossovers and emphasizing shared parts and modular manufacturing processes, Nissan aims to maximize efficiency and meet the changing demands of consumers. While the delay may disappoint some, it highlights the importance of thorough planning and constant adaptation in an industry that continues to undergo rapid transformation.
