Nissan’s scrapped its electric vehicle plans for its Mississippi factory, pivoting instead to hybrid SUVs. The automaker cancelled production of two electric crossovers at its Canton plant that were originally targeted for 2028 and early 2029. This follows an earlier decision in April 2025 to scrap plans for two electric sedans and a smaller electric SUV at the same facility.
Nissan has abandoned its Mississippi EV plans, scrapping five electric models in favor of hybrid SUV production.
The Canton plant won’t build any electric models indefinitely. That’s a major reversal from Nissan’s original $500 million investment earmarked for EV production there. The company had planned three EV models for Canton when it first announced the initiative.
Nissan says it’ll shift the Canton plant to hybrid SUV production starting in 2028 instead. The company hasn’t released full details on which hybrid models it plans to build there, though reports point to possibilities such as an Xterra revival. It cited stronger expected US growth for hybrids and gas-powered vehicles as the reason for the change.
A company memo pointed to slowing EV demand in the US as a key factor behind the decision. Federal EV tax credits are also reportedly set to be eliminated by Sept 30, removing a major buying incentive for consumers. However, Nissan spokesperson Amanda Plecas said the move isn’t related to the new law cutting those credits. Spokesperson Kyle Bazemore called it a strategic decision to adjust the EV timeline for better market timing.
The Canton facility sits in Mississippi and covers 4.7 million square feet. It currently produces the Nissan Altima and Frontier. About 3,700 workers are employed there. Nissan’s total investment in the plant exceeds $4 billion. Suppliers have been notified of all EV-related changes to the production timeline. The plant has been in operation since 2003 and is a major production hub.
Nissan’s still selling EVs in the US. The Nissan Leaf, built in Japan, remains available to American buyers. Nissan also reportedly plans to grow Leaf exports to further boost its American EV sales figures.
The decision fits a broader industry trend. Many automakers have pulled back on EV timelines as US demand has grown more slowly than expected. Hybrids have picked up steam as an alternative for buyers who aren’t ready to go fully electric. Industry experts warn that eliminating the up to $7,500 consumer tax credit under the new policy could further slow EV adoption and chill manufacturing investment across the sector. Automotive News has reported on the ripple effects hitting Nissan’s supplier partners from these shifts.
