Nissan Revives Xterra: New SUV Starts Under $40,000 with V6 and Hybrid Options

Nissan has officially confirmed the long-awaited return of the Xterra, a rugged SUV that will be built in the United States using a body-on-frame platform. The new-generation model will offer both V6 and hybrid V6 powertrains, positioning it as a direct competitor to the Ford Bronco and Jeep Wrangler.

In a recent teaser, Nissan Americas CEO Christian Meunier revealed the silhouette of the tall, rugged Xterra, emphasizing its off-road capabilities. The teaser, shared via LinkedIn, shows the SUV in a desert setting, complete with a spare wheel mounted on the tailgate, mirroring the design of its rivals.

Affordable Pricing and Market Position

The new Xterra will start at under $40,000, a strategic move by Nissan to address rising vehicle prices in the U.S. market. As Meunier noted during a discussion with journalists, “We’re at a time when the average transaction price in the US is $48,000, and it’s non-sustainable…[Nissan is] going to bring an Xterra below $40,000.”

Simplified Off-Road Focus

Meunier acknowledged that Nissan has strayed from its core values in recent years by overloading vehicles with unnecessary technology. He stated, “We’ve lost our way a little bit, putting a lot of technology for the sake of it, adding a lot of features and cost to our cars.” The Xterra, he emphasized, will embody a return to simplicity, offering “everything you need, nothing you don’t”—a slogan originally used in 2002.

Platform and Powertrains

The new Xterra will be built on a body-on-frame platform shared with other Nissan models. It will be manufactured in the U.S., likely at the company’s Mississippi plant, which currently produces the Frontier pickup truck. The SUV will be available with both a conventional V6 engine and a hybrid V6 powertrain, catering to off-road enthusiasts and eco-conscious buyers alike.

“Xterra, I think, is going to be the symbol of this… [Nissan] is going to bring an Xterra with everything you need, nothing you don’t.”
— Christian Meunier, Nissan Americas CEO

The revival of the Xterra comes 11 years after Nissan discontinued the original model, which was discontinued in 2012. The new Xterra is expected to reignite the brand’s connection with off-road enthusiasts while offering a more accessible price point in a competitive segment.