Delays EV Sedan Development In The US, Nissan Makes Way For SUV Segment

A number of future electric vehicles Nissan. (Doc. Nissan Global)

JAKARTA - Japanese automotive manufacturer Nissan is reported to have temporarily suspended plans for the development of two EV sedans and will expand its ranks to five SUVs and electric crossovers in the United States (US).

"We are adjusting the schedule for the introduction of these five new models to ensure we bring the vehicle to the market at the right time," a company spokesman said.

Nissan predicts that the SUV will launch faster than the sedan. The company also said its factory in Canton, Mississippi will support the manufacture of next-generation vehicles.

This was done not without reason given the demand for SUVs, crossovers, and truck pickups that exceeded the sedan segment in recent years in the US.

The announcement comes as demand for weaker-than-expected electric vehicles prompts a number of global automakers to withdraw from their ambitious electrification plans and focus on hybrid and gasoline-fueled models.

Previously, Nissan committed to launching at least seven of the latest electric vehicles in Uncle Sam's country by 2026 and building manufacturing centers for EVs.

In March, the Japanese-based manufacturer launched a strategy plan "The Arc" consisting of the launch of 30 new models for the global market in 2026, with 16 of them electric-driven vehicles (EVs).

Furthermore, they plan to reduce the production cost of next-generation electric vehicles by 30 percent, paving the way for the balance of costs between EVs and ICE vehicles by 2030.

Nissan also detailed several models to be launched for several markets, such as eight New Energy Vehicle (NEV) models in China, seven models in the US and Canada, five models in Japan and the Middle East, as well as three models in India and Africa, and two models in Oceania.

Despite maintaining a balance between ICE and EV in the next two years, Nissan plans to increase investment in electrification by more than 70 percent by 2026.