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description: Nissan Plans to Increase EV Production to Meet US Tax Credit Rules: The company is aiming to launch 6 EVs at the start of 2026.
title: Nissan Plans to Increase EV Production to Meet US Tax Credit Rules - Energy Theory
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# Nissan Plans to Increase EV Production to Meet US Tax Credit Rules

By [Elliot Clark](https://energytheory.com/author/elliot%5Fclark/)November 17, 20234 Mins Read

![JAN23 Volkswagen Gets the Better of Tesla by Unveiling an Affordable EV](https://energytheory.com/wp-content/uploads/2023/02/Depositphotos_452738712_L-1-1024x683.jpg "Nissan Plans to Increase EV Production to Meet US Tax Credit Rules")

With only two EVs in the American car market and only one car qualified for federal tax credits, Nissan decided to increase its overall electric vehicle production in the United States. The company **aims to sell 6 EVs by the end of 2026**. Thus, Nissan plans to increase EV production to meet US tax credit rules.

With several models manufactured in the Canton Factory in Mississippi, the company is said to launch 6 EVs at the start of 2026\. The Japan-based automaker company [Nissan](https://www.nissan-global.com/EN/), **plans to involve its facility in Decherd, Tennessee in building electric vehicles**. As it has already partnered with [Envision AESC](https://www.envision-aesc.com/en/) at its Smyrna plant in Tennessee, Nissan could partner with a third party for [battery](https://energytheory.com/battery-available-capacity/) production. Presently, [Nissan Leaf](https://www.nissanusa.com/vehicles/electric-cars/leaf.html) and [Nissan Ariya](https://www.nissanusa.com/vehicles/electric-cars/ariya.html) are two EVs in the United States car market.

With the former Electric car **only being eligible for $7,500 in year-end credits** the automaker company is quite not happy. The company is all set to rectify this issue and increase its electric footprint in the American car market by the end of 2026\. This will be done with changes and consolidation of existing models along with more domestic production.

As per the new rules mentioned in the [Inflation Reduction Act](https://www.mckinsey.com/industries/public-and-social-sector/our-insights/the-inflation-reduction-act-heres-whats-in-it), the final location of the assembly of EVs will be in North America. And raw materials for the battery will be sourced from a country that has a free trade agreement with the United States.

As per [Ashwani Gupta](https://www.linkedin.com/in/ashwaniguptanissan/), COO of Nissan, _â€œWith already a significant manufacturing presence in other states, domestic footprint of Nissan would play a role in opening eligibility for its vehicles here.â€_ In the words of Senior Vice President of Nissan Motor Co., [Joji Tagawa](https://global.nissannews.com/en/releases/joji%5Ftagawa%5Fen?%5Fga=2.215465556.233290477.1677571354-1977328501.1677571354), _â€œThe qualification process was complex while stressing Nissan was eager to take advantage of the law to alleviate costs to the customer. We are in the process of making a thorough analysis at the moment.â€_

Aswani Gupta further added, _â€œIRA is challenging, but on the other side, it’s an opportunity to accelerate competitive electrification.â€_ Local raw material outsourcing is the biggest challenge for the company. But driven by new rules, Nissan believes that company sales in the American car market will increase by more than 40% by 2030.

With the accomplishment of this target, the company will have a considerable release in its EV sales volumes. Because in consideration of its overall sale of around 730,000 vehicles in 2022, the **number of electric vehicles sold was around 12,025**. But the company is working to improve its engine designs as Ashwani Gupta hinted about the future plans of Nissan regarding EVs, saying, _â€œIt would simplify powertrains and work to streamline platform designs.â€_

**Also Read:** [With Battery Tech Breakthrough Possibility of Charging EV Vehicles in Just 10 Minutes](https://energytheory.com/with-battery-tech-breakthrough-possibility-of-charging-ev-vehicles-in-just-10-minutes/)

With an alliance between Nissan Motor Company and [Renault](https://www.renaultgroup.com/en/), they became the first to bank on zero-emission fully electric [vehicles](https://energytheory.com/the-impacts-of-running-our-fleet-vehicles-on-propane-12614/). This alliance includes Nissan Leaf which went on-road in 2010\. So far, more than 600,000 Nissan Leaf have been sold worldwide. Joji Tagawa said, _â€œThe company is trying to make its operations and products cleaner, safer, and more inclusive, examining sourcing, production, and sales, as well as its lineup. The company is working with alliance partners and governments to achieve those goals.â€_

Currently, the Nissan EV catalog has **16 variants covering three major sales regions**. But with plans to upgrade its EV sales, the company wants one more platform for those regions. That too with a few variations in suspension designs and batteries in its new and existing electric vehicles. This way Nissan plans to increase EV production to meet US tax credit rules.

**Source:** [Nissan News](https://global.nissannews.com/en/releases/nissan-further-accelerates-electrification-strategy?%5Fga=2.183925989.233290477.1677571354-1977328501.1677571354)

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[Elliot Clark](https://energytheory.com/author/elliot%5Fclark/) 

Elliot is a passionate environmentalist and blogger who has dedicated his life to spreading awareness about conservation, green energy, and renewable energy. With a background in environmental science, he has a deep understanding of the issues facing our planet and is committed to educating others on how they can make a difference.

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