Nissan Motor Co. is reconsidering its plan to increase EV production in the US due to concerns about potential changes to EV tax incentives under the Trump administration.

The company’s ability to produce EVs at the Canton, Mississippi, facility depends on whether the US$7,500 federal tax credit for EV buyers is retained.

Changes to these incentives could affect EV demand, leading to a potential delay in launching four new EV models from 2028 to possibly 2027.

Nissan may also reduce production volumes in favor of hybrid models at its Smyrna, Tennessee facility.

Nissan will discontinue production of the Infiniti QX50 and QX55 at its joint venture plant with Mercedes-Benz Group AG in Aguascalientes, Mexico, due to low demand.

Infiniti production at the plant will end by December 2025, though Mercedes models will continue until May 2026.

Other operations in Mexico, like those for the Kicks and Sentra, will remain unaffected.

These adjustments come amid uncertainties related to trade policies, including potential tariffs on Mexican and Canadian exports to the US.

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