TOKYO, Japan: Nissan has halted development of an all-electric version of its top-selling Qashqai SUV in Europe as the Japanese automaker cuts costs and reduces the number of models in its global lineup, six sources familiar with the matter said.

The decision could leave Nissan trailing behind established rivals and Chinese newcomers in one of Europe's most important electric-vehicle segments. If the project is revived, the electric Qashqai may not reach the market until the early 2030s, two of the sources said.

Nissan announced in 2023 that it would build an electric Qashqai at its Sunderland plant in northeast England. The British government welcomed the project as a boost to the country's electric-vehicle manufacturing ambitions.

The company did not give a launch date at the time. Development was halted early in 2025, according to sources who spoke on condition of anonymity due to the sensitivity of the matter.

Nissan has since begun a major global restructuring and is in discussions with the British government over financial support for an updated plan for the Sunderland factory, Reuters reported last week. An announcement expected in the coming months could clarify the company's latest plans for the electric Qashqai.

Nissan did not directly address whether it had shelved the project. It said it remained committed to expanding its "electrified" lineup, which includes hybrid vehicles.

The company said Europe had seen "significant volatility" in demand for electric vehicles and that it was pursuing a "balanced" electrification strategy.

Nissan already produces the electric Leaf at Sunderland and in April unveiled an electric Juke crossover that will also be built at the plant.

The Qashqai remains central to Nissan's European business. The petrol and hybrid model accounted for about 45 percent of the company's 330,000 vehicle sales in Europe in 2025, according to Nissan sales data analysed by Reuters.

Any new British government support is expected to be tied to Nissan's commitments to produce new models or variants and protect jobs at Sunderland, which employs about 6,000 people.

Nissan also said this month that it had signed an agreement with Chinese automaker Chery to study manufacturing Chery vehicles on one of Sunderland's two production lines.

Britain is consulting with automakers on proposals to ease rules that require companies to meet electric-vehicle sales targets or face fines, sources said. The changes could give Nissan more room to make hybrid vehicles at Sunderland, which produced more than 35 percent of all cars made in Britain last year.

Nissan has also reassessed its EV plans elsewhere. Earlier in 2026, it confirmed it would halt plans to build two electric SUVs at its Canton, Mississippi, plant and focus instead on hybrid models.

The company has said it will reduce its global model range from 56 to 45 vehicles. Separately, plans to build a three-in-one electric vehicle powertrain at a Sunderland factory operated by Nissan subsidiary JATCO have been scrapped, the companies said.