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Nissan shelves development of electric Qashqai SUV as cost-cutting takes priority

The venture in 2023 committed to building an EV version of its Qashqai SUV at Sunderland, Britain's largest car plant

In what seems to be another blow for the United Kingdom’s manufacturing and automobile sector, Nissan has stopped work on an electric version of its top-selling model in Europe, with the Japanese automaker now looking to trim its vehicle lineup and cut costs.

The venture in 2023 committed to building an EV version of its Qashqai SUV at Sunderland, Britain’s largest car plant, a plan that was hailed by the then Rishi Sunak government, as the latter believed that the move would help the European giant to cement its position as a global EV manufacturing hub.

While the company, back in 2023, did not specify a timeline to deliver the EV variant, and shelving the project may end up helping the venture save money, Nissan may not be able to bring the car to market until early next decade if it has a rethink, a setback that will likely leave it trailing peers in a key market segment. Nissan’s Chinese rivals have already flooded the European market with affordable yet feature-loaded alternatives.

Since 2023, Nissan has been in a restructuring mode and, as per Reuters, was, till last week, in talks with the British government about securing financial support for an updated roadmap for the plant. In the Sunderland facility, Nissan already makes the electric compact Leaf and, in April, unveiled an electric crossover SUV, the Juke, to be built there.

“Even if Nissan restarts the Qashqai EV project, it would not come to market until the early 2030s,” sources quoted by Reuters said.

In a statement, Nissan did not address its plans for a fully electric Qashqai but said it remained committed to expanding its “electrified” line-up, including hybrid models. As per the company, the European market has been experiencing “significant volatility” in EV demand, forcing the business to pursue a “balanced electrification strategy.”

Nissan already sells the Qashqai as a petrol and hybrid vehicle, and the ‌model reportedly accounted for ⁠about 45% of its total sales of 330,000 cars in Europe in 2025.

“Any new government funding for Nissan will be connected to its commitment to produce new models or variants and protect jobs at Sunderland, which employs about 6,000 workers in England’s industrial northeast,” sources stated further.

“Britain is also consulting carmakers over plans to water down rules that require them to hit EV sales targets or ⁠face punitive fines,” Reuters reported further.

If the changes come into play, they would provide Nissan with room to make more hybrid vehicles at Sunderland, which produced more than 35% of all cars made in Britain in 2025, according to the Society of Motor Manufacturers and Traders (SMMT).

Talking about Nissan ripping its vehicle lineup, the automaker, earlier in 2026, confirmed its plans of halting ⁠plans to build two electric SUVs at its Canton, Mississippi, plant and instead focus on hybrid models. Globally, the firm has said it will cut the number of its models to 45 from 56.

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