Nissan has reportedly shelved plans to develop a fully electric version of its popular Qashqai SUV, a model central to its European sales strategy. The decision, which was reportedly made quietly last year, affects the Sunderland plant, the UK's largest car manufacturing facility, where the vehicle was being developed. This move is understood to be part of a wider cost-cutting initiative by the Japanese carmaker, aimed at reducing its model range by a fifth and significantly slashing expenses.
The news emerges as Nissan is engaged in discussions with the UK government, seeking financial assistance to secure the long-term future of the Sunderland plant in the North East of England. Just last month, the company confirmed it would be closing one of its two production lines at the site, citing a decline in demand for its vehicles. In April, Nissan stated it was exploring various options for the factory and its 6,000 employees, including the potential for contract manufacturing for other carmakers, with a non-binding agreement recently signed with China’s Chery.
This reported halt in development marks a shift from Nissan's 2023 commitment to build an all-electric Qashqai in Sunderland, a move that the UK government had previously highlighted as evidence of the nation's growing status as a global electric vehicle manufacturing hub. While Nissan currently produces the fully electric Leaf at the plant and announced in April that an all-electric Juke would also be built there, the suspension of the Qashqai EV project raises questions about the pace of its full electrification strategy for key models.
Nissan, which reported substantial losses for the financial year ending in March, is in the midst of a significant restructuring programme that has already resulted in the closure of seven factories and 20,000 job cuts worldwide. The company has stated its commitment to expanding its electrified vehicle lineup, including hybrid models, and noted “significant volatility” in European EV demand, leading it to pursue a “balanced” electrification strategy.
The Qashqai, currently available in petrol and hybrid variants, accounted for approximately 45% of Nissan’s total 330,000 car sales in Europe in 2025. The Sunderland factory's output has seen a notable decline, producing 273,000 cars last year compared to 507,000 in 2016. This development comes as the fate of the Sunderland plant has often been intertwined with broader discussions about the impact of Brexit on British industry.
Should Nissan decide to restart the Qashqai EV project, industry reports suggest it would not reach the market until the early 2030s. The UK government's response to Nissan's request for financial support will be crucial in determining the immediate future and long-term trajectory of one of the country's most significant manufacturing sites.