Nissan Pauses US EV Production Amid Tax Credit Cuts
Nissan Pauses U.S. electric Vehicle Production Plans
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Nissan is suspending plans to produce two electric SUVs at its plant in Canton, Mississippi. (Photo obtained by Nikkei)
By Shuhei Ochiai and Ryosuke Hanada, Nikkei Staff Writers
Production Halt Due to Slowing EV Demand and Tax Credit Changes
Nissan Motor Co. has suspended plans to manufacture electric vehicles (EVs) in the United States,the company announced on Wednesday. This decision comes as EV sales in the U.S.have remained weaker than anticipated, and is further influenced by the recent elimination of federal tax credits for EV purchases under the Trump administration.
Impact on Canton, Mississippi Plant
The suspension specifically affects plans to produce two electric SUV models at Nissan’s manufacturing facility in Canton, Mississippi. The company had previously intended to retool the plant for EV production.
Factors Contributing to the Decision
The decision reflects a broader trend of slowing EV adoption in the U.S. market. While demand for EVs is growing globally, the pace in the U.S.has been less robust than some projections indicated. The removal of the federal tax credit, which provided up to $7,500 in incentives for EV buyers, is expected to further dampen demand.
