Nissan Kills EV Sedan Plans, Bets Big on SUVs Instead
Nissan has officially scrapped plans to build two electric sedans in the United States, one for its main brand and another for Infiniti. The vehicles were initially scheduled to be produced at the automaker's Canton, Mississippi, plant, with launches targeted initially for 2026 and 2027. But according to a leaked memo and confirmation from Nissan, those plans are now dead.
The company cited both economic and strategic reasons for the pivot. "The sedan market is shrinking… we need to face reality," said Christian Meunier, Nissan's North American chairperson, in comments to Automotive News. The company's head of product planning, Ponz Pandikuthira, added that with EV battery costs still high, Nissan would have to price the sedans north of $45,000, out of reach for many of its core customers.
Instead, Nissan says it's doubling down on what American buyers are actually asking for. 'Nissan is committed to delivering the right product, at the right time, in the right place, and at the right price," the Automaker wrote in a statement to Car and Driver. "We are actively listening to market data and, most importantly, to our customers. Both are signaling the need for us to reassess our EV offerings, prioritizing what our customers truly want — SUVs over sedans. Production will now focus on three fully electric SUV models, including versions for both Nissan and INFINITI, with manufacturing starting around mid-2028."
The first of these vehicles is an Xterra-inspired electric SUV, codenamed PZ1K, which was previewed at a Nissan event in Japan. Originally expected in early 2027, production has now been pushed to January 2028. A luxury version under the Infiniti badge, codenamed PZ1J, will follow a few months later in May. A third electric model is also in the works, but Nissan hasn't revealed any details yet.
While tariffs and supply chain issues have challenged the auto industry, Nissan's retreat from sedans appears to have been in motion well before the most recent disruptions. The company had already delayed its sedan timeline once in early 2024, and internal hesitation seems to have grown from there.
Still, Nissan is optimistic about its U.S. manufacturing footprint. 'We're very fortunate to have a robust industrial footprint in the United States,' said Vinay Shahani, head of U.S. sales and marketing, to Motor1. That domestic base could give Nissan an edge as it pivots to SUV production amid shifting regulations and consumer preferences.
The cancellation frees up resources for Nissan to focus on more profitable, in-demand segments. But with the new SUV lineup not arriving until 2028, there's a long road ahead. For now, Nissan is betting that rugged, electric crossovers — rather than sleek sedans — are the key to its EV future. Will that bet pay off? We'll find out in a few years.
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