Nissan Drops EV Production Plan in U.S.

New York, April 30 (Jiji Press)--Japanese automaker Nissan Motor Co. will scrap its plans to produce electric vehicles at its vehicle assembly plant in Canton, Mississippi, company officials said Thursday.

The decision apparently reflects sluggish EV sales following the end of U.S. government subsidies for EV purchases.

Nissan announced in 2022 that it would invest 500 million dollars to manufacture EVs at the Canton plant. At the time, the automaker aimed to increase the proportion of EVs to more than 40 pct of its vehicle sales in the United States by fiscal 2030.

The company plans to expand production of other vehicle models at the plant.

An official at Nissan North America Inc. said that the decision was made in light of market conditions, demand and a review of Nissan's strategy. The official said that the United States is a key market and that the company will continue to focus on it as a foundation for revenue and growth.

[Copyright The Jiji Press, Ltd.]