Nissan’s EV Pullback Spreads To Europe As Drivetrain Plan Gets Cut

EV Plans Collide With Market Reality

Nissan recently scrapped its $500 million electric vehicle plan in the U.S. to prioritize gas-powered, truck-based vehicles, including the Frontier. That sounds a lot like Toyota’s playbook with models such as the Tacoma, Tundra, and 4Runner. So far, the strategy appears to be working for Nissan, as it was the fastest-growing mainstream brand in the U.S. in the last fiscal year.

But interestingly, despite Europe having more favorable market conditions for EVs than the U.S., Nissan is also slowing some of its electrification plans there. According to Nikkei Asia, Nissan subsidiary Jatco has withdrawn plans to build e-axles in Sunderland, a project that was estimated at about 9 billion yen, or around $56 million at current exchange rates.

Re:Nissan In Action

As a reminder, Nissan is undergoing a restructuring after years of financial struggles, which has also fueled talk of a possible partnership with Honda. That restructuring has already included plant closures and job cuts, and the plan to build e-axles in Europe is just the latest item on the chopping block. For now, Nissan is expected to source the EV drive units from Japan for its European-made EVs.

However, Nissan’s EV sales in Europe plunged last year, with Leaf sales dropping 99% to just 87 units, while the Ariya recorded a 44% decline. Those factors ultimately contributed to the automaker’s European market share falling to 2.2% in 2025. It is worth noting that the Leaf is in a model transition phase, with the latest generation adopting a more crossover-like design.

Nissan also offers the Micra, a small electric hatchback aimed at meeting Europe’s demand for city cars.

The EV Pipeline Keeps Flowing

That EV lineup stands in contrast to Nissan’s U.S. lineup, which only includes the Leaf after the Ariya was discontinued following the 2025 model year. It suggests the automaker is still leaning more heavily into EVs in Europe, making the cancellation of the e-axle project look more like a strategic pullback, especially with an all-electric Juke expected sometime in 2027.

Nissan is also pursuing electrification efforts in the U.S., though more in the form of hybridization. The automaker’s e-Power hybrid system – a series-hybrid setup in which the wheels are driven solely by electric motors while the engine acts only as a generator – is reportedly on the cards and could eventually be used in models such as the Kicks.

View the full article