- Nissan halted development of a fully electric Qashqai last year.
- The company is seeking ways to secure the future of its Sunderland plant.
- Qashqai accounts for around 45 per cent of Nissan's European sales.
Nissan has reportedly stopped developing a fully electric version of its best-selling Qashqai SUV, a move that could raise fresh questions about the future direction of the company's Sunderland factory and its electric vehicle ambitions in Europe.
According to a Reuters report, the Japanese carmaker quietly halted development of the electric Nissan Qashqai last year as part of a broader cost-cutting drive aimed at reducing its model range and improving profitability. The decision affects a project that was previously presented as a key part of the UK's ambitions to become a major electric vehicle manufacturing hub.
The reported move comes as Nissan continues to review operations across its global business after posting heavy losses for the year ended March.
A changing roadmap for Sunderland
The Sunderland facility remains the UK's largest car factory and has long been central to Nissan's European operations. However, production volumes have fallen sharply over the past decade.
The factory produced more than 507,000 vehicles in 2016, close to its historic peak. By 2025, output had fallen to around 273,000 vehicles.
Last month, Nissan confirmed it would close one of the plant's two production lines following weaker demand for its vehicles. Earlier this year, the company also said it was exploring options for the factory and its workforce of around 6,000 employees.
Among the possibilities being considered is contract manufacturing for other automotive brands. Earlier in June, Nissan signed a non-binding memorandum of understanding with Chinese carmaker Chery to explore producing vehicles on behalf of the company.
Reuters reported that Nissan is also in discussions with the UK government regarding potential financial support as it plans the plant's future.
Cost cuts meet a slower EV market
The reported pause reflects wider challenges facing car manufacturers as electric vehicle demand remains uneven across Europe.
Nissan committed in 2023 to building an all-electric Qashqai, with government ministers at the time pointing to the investment as evidence of Britain's growing role in EV production.
The company has not abandoned electrification altogether. Sunderland already produces the fully electric Leaf and is scheduled to build an all-electric version of the Juke.
However, Nissan appears to be taking a more cautious approach to future EV investments. The company reportedly told Reuters that it remains committed to expanding its electrified vehicle range but is pursuing a "balanced" strategy amid significant volatility in the European EV market.
Even if development of the electric Qashqai resumes, Reuters reported that the model would be unlikely to reach customers before the early 2030s.
The Qashqai remains Nissan's most important model in Europe. Available in petrol and hybrid versions, it accounted for around 45 per cent of the company's 330,000 vehicle sales across the region in 2025.
The latest development comes as Nissan pushes ahead with a restructuring programme that includes closing seven factories globally and cutting around 20,000 jobs. For Sunderland, a factory that has often been seen as a symbol of Britain's automotive industry, the reported pause may add another layer of uncertainty at a time when the sector is already navigating a difficult transition towards electrification.
