Nissan is facing challenges in pushing forward with its plans to build new electric vehicles at its Canton, Mississippi factory. The growth of EV sales in the US has slowed down, with only a 2.6% increase in the first quarter of 2024 compared to the same period in 2023. This is a significant drop from the 46.4% increase seen in 2023. Consumers are expressing concerns about the high prices of EVs and the ease of charging them, leading to a decrease in interest in purchasing EVs.
Currently, Nissan sells two EV models in the US, the Leaf compact hatchback and the Ariya SUV. The company had previously announced plans to build five new EV models in Canton, including two originally scheduled for production in 2025. These models were set to include both Nissan and Infiniti vehicles, with Infiniti being Nissan’s luxury brand. However, due to the slowdown in consumer demand, Nissan is delaying the production of these vehicles in Mississippi to ensure they are brought to market at the right time when there is more customer demand.
Despite the delays in production at the Canton factory, Nissan still plans to offer a total of 19 EV models globally by 2030. The company is adjusting its timeline for introducing new models to align with customer demand and maximize opportunities for its brands and supplier partners. The decision to delay production of new EVs in Mississippi was previously reported by the industry newspaper Automotive News. Nissan had previously announced plans to invest $500 million in the factory to prepare for building new electric vehicles.
Other automakers, including GM and Ford, have also made moves to slow down production of new EVs and EV batteries due to concerns about slowing consumer adoption. GM slowed down the ramp-up in production of its Silverado EV pickup, while Ford reduced the planned size of a factory it was building to make EV batteries. The industry as a whole is adjusting to changes in consumer preferences and demands regarding electric vehicles, delaying production to align more closely with market demand.
