Published On 9/6/2026
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Last update: 20:16 (Mecca time)
In a move that reflects the radical transformation and current turmoil in the global automotive industry, Nissan has retreated from its ambitious strategy to popularize fully electric vehicles (EVs) in its most important Western markets (the United States and Europe).
Years after launching its ambitious “Ambition 2030” initiative, which aimed for a comprehensive transition towards electricity, the Japanese group faced a sharp slowdown in electric car sales, changing government policies, and fierce competition, which led it to take decisive decisions to cancel investments worth hundreds of millions of dollars and redirect its compass towards hybrid cars and gasoline-powered trucks.
Electric drive axles (e-Axle) project in Europe
One of the most prominent features of this decline was in the European continent, specifically in the United Kingdom, where Jatco, the specialized arm in manufacturing transmission systems of Nissan, announced the cancellation of its official plan to produce electric drive axles (3-in-1 e-Axle) at its factory in the British city of Sunderland.
The project included an investment estimated at about 9 billion Japanese yen (about 56.2 million dollars) to build a facility with an area of 138,840 square feet to manufacture up to 340,000 units annually of integrated electric propulsion engines, to feed future Nissan models.
This decision came as part of the company’s comprehensive transformation plan as a result of the terrible decline in demand for Nissan electric cars in Europe, as reports indicate a decline in sales of the electric “Leaf” model by more than 99% in some European markets, in addition to a decline in sales of the “Ariya” model by 44%, which dropped Nissan’s market share in Europe to only 2.2%.
Instead of local manufacturing of engines in Britain, Nissan will rely on importing electric drive units directly from Japan to reduce fixed expenses, while limiting expectations for fully electric versions of the Qashqai and Juke models.
A $500 million investment plan in America
In parallel with the European decline, Nissan’s electric plans in North America received a fatal blow, as the company officially informed suppliers and dealers of the cancellation of its huge project to manufacture electric cars at the “Canton” factory in Mississippi.
In 2021, Nissan pledged to pump investments worth $500 million to modernize the Canton factory (which extends over an area of 4.7 million square feet), to make it a center for producing a new generation of electric cars and batteries for the luxury “Nissan” and “Infiniti” brands, targeting the sale of 200,000 electric cars annually in America by 2028.
The factors for the decline in America are due to the slowdown in demand and growth, as the growth of electric car sales in the American market in general declined by 27% in the first quarter of 2026, according to data, in addition to policies and legislation. The US government’s cancellation of federal tax exemptions that gave buyers a discount of $7,500 has made electric cars unattractive in price to the American consumer.
Nissan also withdrew the Ariya electric crossover and other electric sedans from targeted American production lines, leaving only the LEAF model as the only electric option available there.
Alternative strategy: trucks and hybrid cars
To confront this decline and ensure continued profitability and avoid huge financial losses, Nissan has developed an alternative plan based on traditional and hybrid axes that are in line with current consumer demand through:
- Revitalizing truck and SUV platforms: Nissan intends to convert the “Canton” plant in Mississippi to produce conventional and hybrid cars and trucks.
The beginning will be by reviving the famous Nissan Xterra off-road vehicle by 2028 as an affordable SUV, followed by a new three-row version of the Nissan Frontier truck, in addition to three other models that all share the same platform to reduce engineering costs by 70%. - Expansion of hybrid e-Power technology: The company is focusing extensively on its e-Power smart hybrid system (where the gasoline engine acts solely as an electricity generator while the wheels are driven by electric motors).
This system will be rolled out to popular models such as the Nissan Kicks and Nissan Rogue to meet the needs of consumers looking for fuel efficiency without the limitations of electric charging. - Reducing production capacities globally: As part of a major restructuring strategy, Nissan aims to reduce the number of its total factories globally from 17 factories to only 10 factories by 2027, and reduce fixed costs, while aiming to raise its total sales in North America to one million units by 2031 by focusing on hybrid and fuel vehicles.
Nissan is not alone
This shift from Nissan does not occur in isolation from the sector, but rather represents a general wave that struck the automotive giants. Major American companies such as General Motors (GM) and Ford (Ford) made similar decisions to postpone or cancel production lines of fully electric trucks, and refocus on internal combustion engines and hybrid cars (Hybrids).
It is clear that the North American market is currently clearly moving towards hybrid cars, while the growth of electric cars remains more confined to the Asian markets and parts of Europe, driven by the spread of low-cost Chinese companies.
Nissan’s retreat from its electric drive in Europe and America is not just a step backwards, but rather a realistic and bold recognition that the path towards a zero-emission environment is not a straight line, but rather a corridor full of economic and geopolitical turns. The recent transformations in the global automobile market have proven that the consumer has not abandoned traditional fuels as quickly as expected by company boards of directors, and that infrastructure and legislation are still unable to keep up with the grand ambitions.
Nissan’s strategy reflects the concept of “tactical flexibility.” The companies that will survive in this turbulent era are not those that adhere to their old plans blindly, but rather those that have the courage to change their sails with the direction of the wind.
By balancing the reliability of gasoline engines with the efficiency of hybrid technology, Nissan is trying to secure its financial present, waiting for the moment when the global market matures to fully accept the electric revolution.
