The firm, headed by British inventor Sir James Dyson, said its engineers had developed a “fantastic electric car” but that it would not hit the roads because it was not “commercially viable”.
In an email sent to all employees, Sir James said the company had unsuccessfully tried to find a buyer for the project. The division employs 500 UK workers.
Dyson had planned to invest more than £2bn in developing a “radical and different” electric vehicle, a project it launched in 2016. It said the car would not be aimed at the mass market.