Nissan revises its powertrain strategy, emphasizing plug-in hybrids and EREVs due to weak EV demand. Learn about the Re:Nissan restructuring and new models.

Nissan is revising its short-term powertrain development strategy. In addition to fully electric models, the company is placing greater emphasis on plug-in hybrids and extended-range electric vehicles (EREVs). This shift comes in response to weaker-than-expected demand for pure battery-electric cars.

Nissan’s CEO Ivan Espinosa, who took office in April 2025, has launched the Re:Nissan restructuring program. The plan calls for cutting costs by 500 billion yen (approximately 2.7 billion euros), lowering the break-even point from 3.1 to 2.5 million vehicles by fiscal year 2026, reducing the number of plants from 17 to 10, and eliminating 20,000 jobs.

The company will continue to develop its e-Power technology, where an electric motor drives the wheels while a gasoline engine acts as a generator. This platform will serve as the basis for planned PHEV and EREV versions, which are expected to help lower average emissions and offer customers greater range flexibility.

Nissan is also exploring export opportunities from China, including the Frontier Pro pickup with a hybrid system co-developed with Dongfeng. This strategic adjustment could impact new 2026 models, potentially increasing the share of hybrid solutions in the brand’s lineup.