Nissan, once a pioneer in the electric vehicle (EV) market, appears to be hitting some roadblocks in its EV strategy. While the company has the LEAF and the newer ARIYA in its lineup, recent reports suggest a significant shift in their plans, including the cancellation of a highly anticipated small electric SUV for the U.S. market. This decision raises questions about Nissan’s future in the increasingly competitive EV landscape.
The Axed Subcompact Electric SUV
Nissan has reportedly scrapped plans to build a subcompact electric crossover in the United States, a model that was intended to bridge the gap between the LEAF hatchback and the larger Rogue SUV. Codenamed PZ1L, this vehicle was meant to be larger than the LEAF but smaller than the Rogue, potentially resembling something like an electric Subaru Crosstrek. The vehicle was slated to be produced at Nissan’s Canton, Mississippi, facility.
Why the Cancellation?
Several factors appear to have contributed to Nissan’s decision to abandon the small electric SUV project in the U.S.
- Shift in Focus: Nissan has stated that they are shifting their focus to more lucrative projects that promise greater consumer demand. They aim to concentrate on other EV models that they believe will be better suited for the U.S. market and achieve higher sales volumes.
- Slower EV Adoption: The decision is believed to be partly influenced by the slower-than-expected adoption of electric vehicles in the U.S. market.
- Political Uncertainty: The potential return of President Trump to the White House has also introduced uncertainty, as he has pledged to end the “Green New Deal” and revoke the electric vehicle mandate, possibly eliminating the $7,500 clean vehicle tax credit.
- Profitability Concerns: There are also concerns about the profitability of producing a smaller EV model in the current market conditions.
Production Shift
While the small electric SUV is not planned for U.S. production, it is still slated to be built at Nissan’s Sunderland plant in England. This means that while American consumers may miss out on this model, it could still be available in other markets.
Nissan’s Current EV Lineup
Despite the cancellation of the subcompact SUV, Nissan still has two EVs in its current lineup: the LEAF and the ARIYA.
Nissan LEAF: The Pioneer
The Nissan LEAF was a pioneer in the EV world, launched in 2010. The 2025 model continues to improve on its legacy with upgraded powertrains, practical interior space, and advanced tech features, all while maintaining its affordability.
Key Features of the 2025 Nissan LEAF:
- Affordable Pricing: The LEAF remains one of the most budget-friendly EVs on the market.
- Multiple Battery Options: Available with 40 kWh or 62 kWh battery options, offering a range of up to 226 miles, depending on the model.
- ProPILOT Assist: Nissan’s semi-autonomous driving system helps reduce stress during long commutes.
- Zero Emissions: Offers a fully electric, zero-tailpipe emission driving experience.
Nissan ARIYA: The Modern SUV
The Nissan ARIYA is a sleek, modern SUV, released as a premium EV experience, combining powerful performance with a futuristic design. It is the brand’s first zero-emissions SUV.
Key Features of the 2025 Nissan ARIYA:
- Longer Range: Offers an estimated range of up to 300 miles, depending on the configuration.
- Powerful Performance: Available with two powerful motor options.
- e-4ORCE All-Wheel Drive: An available all-wheel-drive system that ensures stability and performance.
- Stylish Design: The Ariya is noted for its handsome and carefully tailored exterior, as well as its stylish and well-appointed interior.
2025 Nissan EV Lineup: An Overview
| Model | Body Style | Starting Price | Battery Options | Estimated Range | Key Features |
|————–|—————–|—————-|—————————————————-|——————-|—————————————————————————————–|
| Nissan LEAF | Hatchback | $28,040 | 40 kWh or 62 kWh | Up to 226 miles | Affordable, ProPILOT Assist, practical interior |
| Nissan ARIYA | Compact SUV | $43,190 | 63 kWh or 87 kWh | Up to 304 miles | Premium design, e-4ORCE AWD, powerful performance |
Nissan’s Struggles in the EV Market
Despite being an early adopter of EV technology, Nissan’s market share has been declining.
- Market Share Decline: Nissan’s U.S. market share has decreased by 2.1% over the past five years, now standing at just 5.8%.
- EV Sales: In 2024, Nissan sold approximately 31,000 electric vehicles in the U.S., with roughly 20,000 Ariya models and 11,000 LEAFs.
- Competition: Nissan faces increasing competition from other automakers that are rapidly launching new electric models.
Recent Sales Performance
While Nissan’s overall sales have seen some fluctuations, there have been some bright spots in their EV sales.
- LEAF Revival: The Nissan LEAF has seen a significant sales increase, with a 170.4% year-over-year increase in sales in the fourth quarter of 2024.
- Ariya Growth: The Ariya also experienced growth, with a 30.2% increase in sales in the fourth quarter of 2024 and a 47% increase in total sales for 2024 compared to 2023.
| Model | Q4 2024 Sales | 2024 Total Sales | 2024 vs 2023 Sales Growth |
|—————|—————|——————|—————————|
| Nissan LEAF | 3,645 | 11,226 | 57% |
| Nissan ARIYA | 4,901 | 19,798 | 47% |
Future Outlook
Nissan is working on establishing a domestic supply chain for electric vehicles to support future models. The company has also announced a partnership with Honda to collaborate on EV technologies, aiming to catch up with leaders in the EV market. However, these benefits are not expected to be realized until around 2030.
Key Challenges for Nissan
- Rebuilding Market Share: Nissan needs to address its declining market share to remain competitive in the EV segment.
- Ramping Up Production: Nissan has delayed its EV production plans at its Canton, Mississippi facility until 2028, which could further impact its competitive position.
- Meeting Consumer Demand: Nissan needs to ensure that its EV offerings meet the increasing demands of consumers for range, performance, and technology.
Conclusion
Nissan’s decision to cancel the small electric SUV for the U.S. market is a significant setback in its EV strategy. While the company has made some progress with the LEAF and ARIYA, it faces considerable challenges in a rapidly evolving EV market. Nissan needs to find a way to innovate and ramp up its EV production to regain its footing in the industry. The cancellation of the subcompact crossover represents a missed opportunity to fill a crucial niche in the market. It remains to be seen whether Nissan’s remaining EV plans and collaborations will be enough to revitalize its position in the years to come.
