Nissan Pulls Back In North America: EV Launch Delayed, Canada Shipments Suspended Amid Policy Shifts

Nissan is slowing down parts of its North American growth plans, delaying the introduction of two electric SUVs to the U.S. market and halting vehicle exports to Canada. 

Japanese automakers, including Nissan, have had to reassess parts of their strategy in the region as new U.S. trade rules, the expiration of EV tax credits, and reduced demand have created challenges.

The two midsize electric SUVs — one for Nissan and the other for luxury brand Infiniti — were expected to begin production at the automaker’s plant in Mississippi in 2028. 

However, the timeline has now been delayed to late 2028 or early 2029, Nikkei reported. 

The company had initially planned to launch five electric vehicles in the U.S., but has since canceled development of a small SUV and a sedan, reducing its pipeline to three EV models.

The shift comes after the Trump administration’s ‘One Big Beautiful Bill Act’ eliminated EV tax credits effective September 30. The Biden-era incentives, worth up to $7,500, were initially aimed at boosting sales of North American-made EVs. 

A 2023 revision under the Biden administration expanded eligibility to include leased vehicles made overseas, which lifted EV lease penetration from 10% in early 2023 to 66% by March 2025, according to Cox Automotive.

Japanese and South Korean automakers lacking U.S. EV production facilities depended on leasing provisions to maintain their competitive edge. 

EV demand faces additional pressure from incentive elimination while also struggling with high vehicle costs, insufficient charging stations, and widespread preference for gasoline SUVs. Currently, EVs account for just 7% of new vehicle sales in the U.S.

In April, EV incentives averaged 14.5% of sticker prices — double that of gasoline cars — but demand remains sluggish.

Meanwhile, Nissan’s battery supplier, AESC, has suspended construction of a plant in South Carolina. If EV demand continues to stagnate, U.S. battery production capacity could become excessive, Nikkei reported, citing a finance industry source.

Separately, Nissan reportedly halted production in May of three Canada-bound models — the Pathfinder and Murano SUVs, built in Tennessee, and the Frontier pickup, produced in Mississippi — following the Trump administration’s decision in April to impose a 25% tariff on auto imports.

Mazda also paused Canada-bound production at its Alabama plant and is shifting output to the U.S. market, the company said.

Other Japanese automakers are also adjusting. Toyota has postponed EV production in Indiana by two years and is increasing the output of hybrid and gasoline versions of the Grand Highlander SUV. Honda has halted the development of a large electric SUV it had positioned as a key product for the U.S. market.

On Stocktwits, retail sentiment for Nissan was ‘bullish’ amid ‘extremely high’ message volume by late Tuesday.

Nissan’s U.S. shares have declined 26.8% so far this year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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