Nissan halts development of electric Qashqai as it cuts costs and reviews EV strategy
Nissan has halted development of a fully electric version of its best-selling Qashqai SUV in Europe as the Japanese automaker reassesses spending and trims its global model range amid intensifying competition in the electric vehicle market.
According to multiple media reports citing sources familiar with the matter, work on the Qashqai EV was quietly suspended early last year as part of a broader cost-cutting and restructuring programme. The model had been expected to play a central role in Nissan’s European electrification plans and was due to be produced at the company’s Sunderland plant, the largest car manufacturing facility in the UK.
The decision marks a notable shift from Nissan’s previous commitments. In 2023, the company announced plans to build an all-electric Qashqai in Sunderland, a project welcomed by the British government as a boost for the country’s ambitions to become a major electric vehicle manufacturing hub.
Sources cited by Reuters said that even if Nissan eventually revives the project, the vehicle is unlikely to reach the market before the early 2030s. Nissan declined to comment directly on the future of the Qashqai EV but said it remained committed to expanding its range of “electrified” vehicles, including hybrids. The company also pointed to significant volatility in European EV demand and said it was pursuing a “balanced” electrification strategy.
The move comes as European and Chinese manufacturers continue to launch new electric crossovers, increasing pressure in one of the continent’s most competitive automotive segments. Analysts note that delaying the Qashqai EV could leave Nissan at a disadvantage against rivals such as Volkswagen, Renault and several Chinese brands that are rapidly expanding their electric offerings across Europe.
The suspension of the project appears to be part of a wider review of Nissan’s global strategy.
The company has already announced plans to reduce its worldwide model range from 56 vehicles to 45 and earlier this year scrapped plans to build two electric SUVs at its plant in Mississippi, opting instead to focus on hybrid models.
Questions also remain over the future role of the Sunderland facility, which employs around 6,000 people and produced more than a third of all cars manufactured in Britain last year.
Nissan is currently discussing potential government support for an updated roadmap for the site and recently signed an agreement with Chinese automaker Chery to explore producing vehicles at the plant.
Industry observers see the decision as another sign of the challenges facing traditional automakers as they try to balance ambitious electrification targets, rising development costs and growing competition from lower-priced Chinese electric vehicles. The company is expected to provide further details on its plans for Sunderland and the Qashqai programme at a future investor presentation.