Nissan pauses EV sedan development in US, widens lineup

Nissan Motor Co (7201.T), opens new tab has paused development plans for two battery-powered sedans while expanding its EV lineup to five vehicles in the United States, the Japanese automaker said on Tuesday.

"We are adjusting the timeline for the introduction of these five new models to ensure we bring the vehicles to the market at the right time," a Nissan spokesperson told Reuters.

The company's new lineup for the U.S. also includes battery-powered crossover SUVs.

While Nissan's electric sedans are still in the production plan, the company expects the SUVs to be rolled out faster than its sedans.

The company also said its Canton, Mississippi factory would support manufacturing of its next-generation vehicles.

The announcement comes as weaker-than-expected EV demand prompts global automakers to pull back from their ambitious electrification plans to focus on hybrids and gas-powered models instead.

Additionally, demand for crossover SUVs and pickup trucks has outweighed sedans and other vehicle formats over the past few years, as Americans prefer the convenience offered from those platforms.

In March, Nissan had laid out plans, opens new tab to accelerate its EV transition around the globe, including seven new models to be sold in the United States by 2026 and an EV manufacturing hub, opens new tab in the country.

Automotive News first reported, opens new tab that Nissan had paused U.S. production plans for its first next-generation electric vehicles.