Nissan announces revival plan to arrest dwindling sales and sliding profits

03/26/2025 06:28 AM

Nissan has laid out its near-term comeback playbook, and doubled down on the brand’s hybrid and electric vehicle (EV) future plans in a bid to arrest its financial troubles.

As part of a global announcement, Nissan has reiterated the beleaguered brand’s plans for a range of models intended to turn around its profitability after recent merger talks with Honda collapsed.

In the short term for Australia, the Ariya electric car – a Tesla Model Y-sized SUV set to compete against the glut of Chinese-sourced rivals such as the XPeng G6, Geely EX5, Leapmotor C10, Deepal S07, Kia EV5, and others – is due to arrive this year.

It is still to be seen whether the Ariya, now nearly five years after its production debut and already available in overseas markets since 2022, can compete in the crowded segment on price and features, but full details will be revealed closer to launch.

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It is also likely too little, too late for an electric vehicle (EV) like the Ariya to make much of an impact on Nissan's bottom line given the tapering interest in tailpipe emissions-free models and the breadth of options available.

This means Nissan's turnaround strategy will not kick off in earnest until next year, starting from the Japanese financial year 2026 (FY26) from April.

Another EV will join the Nissan stable, the long-in-development third-generation Leaf that has morphed from a small hatchback to a more in-demand small SUV.

The production line and tooling for the new Nissan Leaf at Sunderland, UK has already been completed and the new model, based on the Ariya’s CMF-EV platform, will launch in international markets this year ahead of its 2026 Australian arrival.

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Also produced at the Sunderland facility will be the next-generation Qashqai e-Power, a small SUV competing for share against the Toyota Corolla Cross, Mazda CX-30, and Hyundai Kona.

Exact details on the new e-Power range-extender hybrid system were not disclosed, but Nissan has previously stated it is aiming for a 20 per cent increase in power and a 10 per cent improvement in fuel efficiency, while the latest release claims a “15 per cent enhancement in economy at high speeds” underpinned by a new 1.5-litre petrol engine.

Based on today's Qashqai e-Power model, which outputs 140kW/330Nm and returns a 5.2 litres per 100km consumption claim, that would mean new figures of around 168kW/396Nm and 4.7L/100km.

Crucially however, the new-generation e-Power technology is projected to cost less due to production efficiencies and maturing technology, meaning the hybrid system could possibly be had at the same price of a purely petrol engine.

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Although the facelifted, third-generation Qashqai has just arrived in Australian showrooms, a more affordable e-Power would better position the model against segment leaders, and allow Nissan to capitalise on the booming hybrid market that is so far up 42.5per cent this year.

Also critical for Australia is the release of the V6-powered Y63 Patrol off-road SUV and the Navara ute, which shares its underpinnings with the Alliance-partner Mitsubishi Triton.

The former was revealed in September last year, but won't arrive in local showrooms until the latter half of 2026, and it remains to be seen if switching the 258kW/560Nm 5.6-litre naturally aspirated petrol V8 for a GT-R-derived 317kW/700Nm 3.5-litre twin-turbo V6 will retain its showroom appeal.

In 2024, the Patrol notched 8293 sales, its most-popular calendar year to date, but with the model in runout to the end next year, Nissan likely will not see those heights again until at least 2027.

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As for the Navara ute, though the nameplate competes in one of the largest market segments in Australia, it has, in recent times, been overlooked in favour of the Ford Ranger, Toyota HiLux, Isuzu D-Max, and Mitsubishi Triton by customers.

A refreshed and revised Navara, possibly sporting the same 150kW/470Nm 2.4-litre twin-turbo-diesel four-cylinder powertrain as the Triton, could reinvigorate the nameplate helping it climb the sales charts against newer rivals.

Both the new-generation Navara and Patrol are also expected to be in line for the Warrior treatment, a factory-backed off-road enhancement package by way of Australian engineering firm Premcar.

Overseas, the comeback plan also entails a reborn, Renault-partnered Micra hatchback and third-generation Juke – now now EVs – that are due to hit Europe in 2025 and 2026 respectively, but no plans for these models were announced for the Oceania region including Australia.

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The US market will also receive a refreshed Pathfinder this year, but with the large SUV and aforementioned Juke not in the two-year timeline for Oceania, the future of both nameplates hang under a cloud.

Nissan’s first plug-in hybrid electric vehicle (PHEV) will also be launched in North America this year with the Rogue (known as the X-Trail in Australia), all but confirming it will share its powertrain with the Mitsubishi Outlander as both models already share platforms.

Other announcements of note that might have an affect in Australia include a next-generation Rogue launching in 2026, a new US-built “adventure-focused SUV”, and a next-generation people mover in Japan with the latest e-Power technology.

Last year, Nissan Australia tallied a total of 45,248 sales, enough to secure ninth place on the sales charts, but so far this year it is tracking behind pace with 6594 units sold after two months, a 29.2 per cent year-on-year drop.

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However, Nissan rolled out an industry-leading 10-year/300,000km in February, which has also been backdated to January 1, 2021 for eligible customers who have carried out servicing at a brand-approved outlet.

The first signs of trouble for Nissan began last year in November, when an unnamed executive stated the brand has "12 to 14 months to survive" amid job cuts, tumbling sales figures, and dwindling profits.

As a result, Nissan first reshuffled its executive board, installing a new Chief Financial Officer (CFO) and opening talks with compatriot Japanese brand Honda for a merger.

While Mitsubishi was also part of negotiations early on, it was reported the brand opted to stay out of the union and remain independent.

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Nissan and Honda continued talks, with the latter supposedly eager for the former to cut ties with French-brand Renault, but both parties officially walked away from the negotiation table in February.

Reports indicate no deal was reached because Nissan wanted an equal partnership between the two, despite Honda being the larger global brand and on much more stable financial footing.

Nissan's former CEO, Makota Uchida, who has been in the top job since 2019, has since been told by the brand's board to "step down" and will be succeeded by former Chief Planning Officer Ivan Espinosa from April 1.

At the announcement today, Espinosa said Nissan is ready for the long haul, backed by new products to reinvigorate the brand.

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“Over the next two years, we are excited to roll out an impressive lineup that will redefine the road! This includes the reimagined Nissan LEAF, and a daring new Micra EV,” Espinosa said.

“But that’s not all – we’re refreshing our range of SUVs to elevate the driving experience, and our next-generation e-POWER promises new levels of refinement and efficiency. We are committed to investing in products that embody the very best of Nissan.

“To our passionate fans and loyal owners around the world, I can assure you, this is just the beginning of an exciting journey ahead.”

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Meanwhile, Nissan Chief Performance Officer Guillaume Cartier said the rejuvenated line-up is expected to help the brand once-again grow its sales.

“Today, we unveil our redefined market approach and tailored product strategy designed to better meet customer needs and drive top-line growth,” Cartier said.

“Through powertrain diversification and new models, we will provide a broader range of options that cater to diverse customer preferences.”

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