Nissan has called off its plans to produce electric vehicles at its Mississippi plant in the US.

Nissan Motor has canceled its plans to manufacture two battery-operated SUVs at its Canton facility in Mississippi due to a decline in local demand for battery electric vehicles (BEVs), following the US government's withdrawal of purchase incentives last year, according to reports from Japan. This decision aligns with a larger global product strategy introduced last month aimed at reducing costs and enhancing economies of scale.

The reports indicate that Nissan's production strategy in the US, which included various electric vehicle models like the two SUVs intended for the Canton plant, has faced challenges due to delays in new product development and is now being scaled back amid uncertain demand.

During the announcement of the 'Nissan Vision' long-term strategy last month, the company indicated it would take a more adaptable approach to BEV investments in the US, while closely observing market demand and policy shifts. On a global scale, Nissan plans to reduce its model lineup by 20%, cutting from 56 to 45 models by 2030 to lower costs, while also expanding powertrain options for each remaining model.

A representative for Nissan confirmed the company's ongoing commitment to the US as a key market and a cornerstone for stable returns and sustained growth.

Nissan’s CEO, Ivan Espinosa, stated last month that the company will focus its future strategy on its three largest markets—Japan, the US, and China—to enhance its global economies of scale and competitiveness.