Next-Gen Nissan Xterra Starts Under $40,000, Launching in 2028

Nissan is developing a next-generation Xterra and has confirmed its starting price will be under $40,000. Christian Meunier, Chairman of Nissan Americas, stated in a recent interview that the vehicle will "have everything it needs, but nothing extra," acknowledging that the company previously "added tech and features just for the sake of adding them" and has now decided to shift its strategy—with the Xterra serving as the flagship example of this change. Previously, Nissan Senior Vice President Michael Soutter also emphasized in November 2023 that the model "must" start below $40,000. The new Xterra is expected to launch as a 2028 model year vehicle. So far, only one teaser image has been released, showcasing a sharply creased hood, a slim light bar above the grille, and a prominent "NISSAN" badge. Under the hood, the Xterra will feature a body-on-frame construction and offer two powertrain options: a gasoline-only version powered by the same 3.8-liter V6 engine found in the Frontier pickup (producing 310 horsepower), and a V6 hybrid variant. The vehicle will compete against rugged off-road SUVs such as the four-door Jeep Wrangler, Ford Bronco, and Toyota 4Runner—all of which currently have starting prices around $40,000.