Detroit, MI — Nissan has officially confirmed the return of its popular Xterra off-road SUV, with production slated to begin in 2028 at the automaker’s Mississippi manufacturing facility.
Christian Meunier, chairman of Nissan Americas, validated months of industry speculation during a recent Bloomberg interview. The announcement aligns with earlier leaked information from internal dealer meetings that outlined an aggressive product rollout strategy.
Production Shift Changes EV Strategy
The decision to revive the Xterra comes with a significant trade-off. Nissan will manufacture the SUV at its Canton, Mississippi plant, effectively freezing previous commitments to produce electric vehicles domestically.
This strategic pivot reflects broader industry uncertainty around EV adoption rates and consumer demand for traditional powertrains. Meunier emphasized that dealers are enthusiastic about the move, calling it a clear signal of “Nissan coming back” to its roots.
Hybrid Power Expected
While specifics remain under wraps, industry sources suggest the new Xterra will feature a hybrid V-6 engine configuration. This approach would position the vehicle as a fuel-efficient alternative to traditional gas-powered off-road competitors while maintaining the capability outdoor enthusiasts expect.
The company’s official statement remains cautious, describing the project as under evaluation while confirming the 2028 target date. Nissan views the Xterra’s return as a strategic opportunity to reclaim market share in the competitive mid-size SUV segment.
Manufacturing Economics Drive Decision
Meunier noted that the Xterra production will help optimize the Canton facility’s operations and improve cost structures. The move represents part of Nissan’s broader plan to launch 20 new or refreshed models across North America by spring 2027, with the Xterra serving as a flagship introduction the following year.
I am a senior automotive analyst at Autvex. Expert vehicle evaluations, in-depth reviews, and objective analysis helping readers make informed automotive decisions with years of industry experience.
