Nissan fans have been waiting over a decade for the Xterra to return, and it’s finally happening. But the reborn off-road SUV won’t come with the all-electric powertrain Nissan originally promised. Instead, the company confirmed at the 2026 New York Auto Show that the next-gen Xterra will run on a gas V6 engine, with a hybrid option arriving later.
- Nissan is scrapping plans for an off-road EV and is now planning to launch the fan-favorite SUV with gas and hybrid-powered variants.
- Like the Frontier, the upcoming Xterra is expected to use a body-on-frame construction with an updated version of the current 3.8L V6 engine.
- Nissan is already pulling the Ariya from its US lineup following the 2026 model year, leaving the LEAF as the only pure EV Nissan offers in the US.
Why Nissan Changed Course on the Electric Xterra
It was just over a year ago that Nissan announced plans to introduce 10 new or refreshed vehicles in North America by 2027. Following the updated 2026 LEAF EV, Rogue, Pathfinder, and Sentra, Nissan said an all-new “adventure-focused” electric SUV would join the lineup in 2028. The rugged new EV, which we later learned would be the next-gen Xterra, was scheduled to be built at Nissan’s Canton, Mississippi, plant in the US with locally sourced batteries from SK On.
That original plan is now off the table. Nissan’s chief product and planning officer, Ponz Pandikuthira, told Car and Driver at the New York Auto Show that the upcoming Xterra will be available with a gas-only V6 engine and a V6 hybrid powertrain, but no purely electric version. The shift follows a broader industry trend. Nissan is among several automakers, including Ford and GM, scaling back major electric vehicle projects in the US following the Trump Administration’s policy changes.
The timing is interesting because Pandikuthira told MotorTrend just last December that the next-gen Xterra “cannot be ICE only.” Clearly, a lot has changed in a few months.
What the New Xterra Will Look Like
Like the Frontier, the upcoming Xterra is expected to use a body-on-frame construction with an updated version of the current 3.8L V6 engine. That’s a return to the rugged, truck-based formula that made the original Xterra popular with off-road enthusiasts who didn’t want to pay Toyota 4Runner or Ford Bronco money.
Although the Xterra was a hit as a more affordable off-road SUV than the Toyota 4Runner and Ford Bronco, Nissan pulled it from its US lineup after the 2015 model year as the market shifted toward crossovers. Now with the off-road SUV segment booming again, Nissan sees an opening to bring back a name that still carries a lot of loyalty.
As for the hybrid variant, details remain vague. Pandikuthira said the hybrid can be built off the gas platform, but what that hybrid execution looks like and when it debuts after the ICE version is “still a work in progress at this point.”
Nissan’s Shrinking EV Lineup in the US
Dropping the electric Xterra plan is part of a larger pattern for Nissan. The company is already pulling the Ariya from its US lineup following the 2026 model year and scrapped plans to introduce the more affordable LEAF S trim this year. The LEAF is now the only pure EV Nissan offers in the US.
And that lone EV isn’t exactly flying off lots. The LEAF is a big piece of Nissan’s comeback plan, but it’s off to a slow start with just 668 models sold in the first quarter. In comparison, Toyota sold over 10,000 bZ electric SUVs during the same period. Those numbers paint a tough picture for a brand that was once a pioneer in electric cars with the original LEAF back in 2010.
If you’ve been browsing at Nissan dealers, you’ve probably noticed the limited electric options already. With the Ariya gone and the LEAF struggling to gain traction, Nissan’s EV presence is thinner than it has been in years.
Competition is heating up too. While the 2026 LEAF is still one of the most affordable EVs in the US alongside the new Chevy Bolt, it won’t be for long, as Kia, Rivian, Toyota, and others launch new, lower-priced alternatives.
Hybrids Are the New Priority
While Nissan steps back from full electrification, it’s pushing hard into hybrid territory. Nissan’s upcoming Rogue Hybrid with e-Power will arrive in the US in late 2026, and it will drive more like an electric vehicle minus the range anxiety, with the fuel economy benefits of a hybrid.
The e-Power system is Nissan’s third generation of the series hybrid since it debuted in Japan in 2016. Since then, Nissan said it has sold more than 1.6 million vehicles globally with e-Power in nearly 70 countries. It’s been proven overseas, but American buyers are getting their first taste of it now.
Automakers like Nissan are turning to hybrid vehicles after losing billions of dollars on EVs. S&P Global Mobility expects hybrids in the US this year to increase to 18.4% of new vehicle sales, up from 12.6% last year and 7.3% in 2023. Those numbers show where buyer demand is actually heading, and Nissan wants to be part of it.
Does This Gamble Pay Off for Nissan?
Nissan is clearly betting that buyers want a rugged, gas-powered SUV right now and that hybrids will bridge the gap to a fully electric future. The Xterra’s return could be a smart move if Nissan prices it competitively against the Bronco and 4Runner. But walking away from an EV version of one of its most anticipated vehicles raises real questions about the brand’s long-term direction.
The announcement comes as the second-largest Japanese automaker struggles to reverse several years of deep losses and also marks a rollback of the aggressive EV plans it had previously announced. Nissan needs the Xterra to be a sales hit. Whether gas, hybrid, or something in between, the pressure is on to get this one right.
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