The automaker acknowledged that the sedan segment in North America is dwindling and that it should instead focus on its strengths—namely, compact crossovers.
“Nissan is committed to delivering the right product, at the right time, in the right place, and at the right price,” the brand wrote in a statement. “We are actively listening to market data and, most importantly, to our customers. Both are signaling the need for us to reassess our EV offerings, prioritizing what our customers truly want—SUVs over sedans. Production will now focus on three fully electric SUV models, including versions for both Nissan and INFINITI, with manufacturing starting around mid-2028.”
It appears Nissan did the math and decided that there’s no money to be had in electric sedans—at least for the time being. The automaker has cancelled plans to bring two electric sedans to the United States, according to a new report from Automotive News. The report is based on an internal memo, dated April 21, that the outlet reviewed.
Speaking to AN, Nissan’s North American chairperson, Christian Meunier, said, “The sedan market is shrinking . . . we need to face reality.” Part of the issue, according to Ponz Pandikuthira, Nissan’s North America product planning chief, is the cost to develop and produce EV sedans.
“Premium sedans are not our niche,” Pandikuthira told AN. “If the [electric] sedans start at $45,000-plus . . . you’re not in the core of the sedan market anymore.”
But for Nissan, the cost of the required batteries and technology would have put the new models out of reach of their usual customer base. Instead, the automaker is planning to focus on a new SUV that it will build in Mississippi.
According to the AN report, the vehicle (codenamed PZ1K) is the same Xterra-inspired SUV the brand showed at an event in Japan last month. While production was originally scheduled to start in early 2027, the memo shows that it will instead start in January 2028.
An Infiniti model, codenamed PZ1J, is also planned, but production for that won’t start until May, some four months behind schedule. There are also plans for a third model, an unspecified EV, though the memo gave no hint at its identity or production timeline.
Car and Driver reached out to Nissan to confirm the details reported by AN, we’ve updated this story with the automaker’s response.
