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Nissan has halted development of a fully electric version of its best‑selling European model, the Qashqai, as the automaker accelerates a programme to cut a fifth of its model range and trim costs.The Decision to Suspend the All‑Electric QashqaiThe company quietly stopped work on the EV Qashqai at the Sunderland site last year, a plant that hosts the UK’s largest car factory. The cancellation follows a recent announcement that Nissan will close one of its two production lines at Sunderland and is exploring contract‑manufacturing deals, including a memorandum of understanding with China’s Chery.Financial and Production Numbers Behind the Shift45% of Nissan’s European sales in 2025 came from the Qashqai, out of 330,000 total cars sold.The Sunderland plant employed roughly 6,000 workers and produced 273,000 vehicles in 2025, down from a peak of 507,000 in 2016.Nissan’s cost‑cutting programme has already led to the closure of seven factories and the loss of 20,000 jobs worldwide.The EV Qashqai, even if revived, would not reach the market until the early 2030s.Implications for the UK EV Landscape and Nissan’s Global StrategyBy shelving the EV Qashqai, Nissan signals a shift toward a “balanced” electrification strategy, focusing on hybrids and limited‑run EVs such as the Leaf and the upcoming all‑electric Juke. The move also puts the future of the Sunderland plant in doubt, prompting talks with the UK government for financial support.What’s Next for Sunderland and Nissan’s Electrification RoadmapAnalysts expect Nissan to lean on its existing EV models while using Sunderland’s capacity for contract manufacturing or for producing hybrid variants. The company’s broader turnaround plan hinges on stabilising European EV demand, which has shown “significant volatility,” and on delivering profitability through a slimmer model portfolio.

Nissan announced a non‑binding agreement to explore contract manufacturing for Chery International UK at its Sunderland plant, a step that could secure employment at the country’s largest car factory.Nissan Signs Non‑Binding Agreement to Build Chery VehiclesThe Japanese automaker confirmed that discussions are ongoing to produce Chery‑branded models on production line 1 in Sunderland. The agreement is non‑binding, with final terms to be negotiated in the coming months.Projected Timeline and Production CapacityTarget start: 2027 financial year.Location: Sunderland plant, line 1.Workforce: Approximately 6,000 employees at the site.Current output: Qashqai, Juke, and Leaf models.The plant recently consolidated to a single line, freeing capacity for a new Chinese entrant without cutting jobs.Strategic Implications for the UK Automotive SectorPartnering with Chery, which has quickly risen in the UK market with models like the Jaecoo 7 PHEV, could bolster Sunderland’s utilisation rates and offset the broader decline in European car sales. The deal also aligns with Chery’s ambition to become a top‑three manufacturer in Britain and its recent investment in a UK R&D; hub in Liverpool.Future Outlook: Potential Shifts in UK Car ManufacturingIf the partnership proceeds, Nissan may expand its hybrid or electric portfolio at Sunderland, though details remain undisclosed. The arrangement could set a precedent for further Chinese‑European collaborations, while the British government continues to explore similar partnerships, such as the speculative involvement of Jaguar Land Rover.

The Rise of Chinese Electric Cars The UK car market has long been dominated by foreign brands, but in March, a Chinese car took the top spot. Chery's Jaecoo 7 crossover SUV sold 10,064 units, beating out the usual suspects like Ford's Puma and Nissan's Qashqai. This is not the first time a Chinese-made car has reached number one in the UK, but the Jaecoo 7's ascent has been remarkable. China's Cost Advantage Chery's success is largely due to its cost advantage. The company's electric vehicle plant in Wuhu, China, has lower materials and labor costs compared to European manufacturers. According to Daniel Hirsch, a partner at Oliver Wyman, a plug-in hybrid electric vehicle like the Jaecoo 7 costs Chery around $25,000 to make and sell, compared to $33,000 for a comparable European SUV. The Data Analysis Chery sold 2.8m cars last year, with 1.3m exported. The Jaecoo 7 costs around $23,000 to make and sell. Materials costs are 40% higher in Europe. Labor costs are four times higher in Europe. The Impact Analysis The rise of Chinese electric cars like the Jaecoo 7 has significant implications for the UK and European car markets. Chery's aggressive push into Europe, starting with sales in the UK, Spain, and Italy, could potentially disrupt the market and put pressure on established brands. The Prediction As Chinese car manufacturers continue to improve their products and expand their global reach, they are likely to become increasingly competitive in the UK and European markets. With their cost advantage, state support, and focus on quality, Chinese electric cars like the Jaecoo 7 are poised to make a significant impact in the industry.