Nissan is slowing down its electric plans in the U.S. The Japanese automaker informed suppliers that it’s pushing back the start of production of two electric SUVs destined for North America by 10 months. Production of the models is scheduled for Nissan’s Canton, Mississippi plant.
This decision follows the abolition of federal tax credits for EV purchases, signed into law on July 4 by President Donald Trump in his new budget.
The affected models? A Nissan SUV identified by the codename PZ1K, whose production will now begin in November 2028, and an associated Infiniti model, PZ1J, now scheduled for March 2029.
These next-generation EVs were unveiled in March in Japan, with a design inspired by the Pathfinder and Xterra, but modernised with futuristic elements.
Tax credits abolished, market uncertain
The law signed by the US president abolishes the $7,500 credit for new EVs and the $4,000 credit for used EVs as of September 30, 2025, which risks slowing down an already declining demand.
Nissan justifies its pullback by the slowdown in interest for EVs in the U.S., saying it wants to avoid launching expensive models in an unstable political and economic context.
" We’ve made the strategic decision to slightly adjust the production timeline for our EVs," said spokesperson Kyle Bazemore. Nissan Americas Chairman Christian Meunier acknowledged that political reversals make forecasting difficult: "It's unsettling to have one administration go in one direction, then another doing the opposite."
Potential impacts for the Canadian market
Although these models are intended for the US market, Canada largely depends on North American production for its EVs. Such a delay could slow the arrival of new affordable electric models in our market, even as Ottawa maintains ambitious zero-emission sales targets.
The PZ1K model was initially intended to replace an electric version of the Pathfinder, which might now be hybridized rather than fully electrified. On the Infiniti side, the PZ1J model will target a luxury clientele, but its strategy will also need to be adjusted without purchase incentives in the United States.