Nissan Motor has scrapped plans to produce two battery-powered SUVs at its Canton plant in the US state of Mississippi in response to slowing local battery electric vehicle (BEV) demand, following the withdrawal of purchase incentives by the US government last year, according to reports in Japan. The move is part of a broader global product strategy announced last month designed to cut costs and increase economies of scale.

The reports suggest that the Japanese automaker's US production strategy, which included multiple EV models including two SUVs that were scheduled to be produced at the Canton facility, has struggled to make progress due to delays in new product development and is now being cut back amid uncertain demand.

During the presentation last month of the ‘Nissan Vision’ long-term strategy, Nissan stated that it would adopt a more flexible approach to BEV investment in the US, while closely monitoring demand trends and policy changes. Globally, the company said that it plans to cut its global models by 20%, from 56 currently to 45 models by 2030, to cut costs, while expanding the powertrain options for each remaining model line.

A spokesperson for the Japanese automaker confirmed that the company remains “fully committed to the US as a lead market and a foundation for stable returns and sustained growth.”

Nissan’s CEO, Ivan Espinosa, last month stated that the company will “anchor” its future strategy around its three largest global markets, Japan, the US, and China, to drive its global economies of scale and competitiveness.