TOKYO : Nissan has launched the third-generation Leaf, a cornerstone in the company’s renewed push to reclaim its standing in the electric vehicle (EV) market. Once a pioneer in mass-market EVs, the Japanese manufacturer has in recent years lagged behind its rivals, and the new model represents a critical step in its broader recovery strategy.
The updated Leaf, revealed on Tuesday, will enter the United States market this autumn, with other regions to follow. However, its path to commercial success is likely to be challenging. Units sold in the U.S. will be manufactured at Nissan’s Tochigi facility in Japan, rendering them subject to import tariffs. Compounding the difficulty, American consumer interest in pure EVs has softened, with a growing preference emerging for hybrid alternatives – a segment in which Nissan lacks a current offering in the U.S.
Industry analysts have flagged the timing of the launch as problematic. “There is a high possibility that this is going on sale at the worst possible time, given the imposition of tariffs and the Trump administration’s rollback of EV subsidies,” said Koji Endo of SBI Securities. “If the new Leaf doesn’t sell, it will mean big trouble for Nissan.”
The price for the new model has not yet been disclosed. However, significant changes have been introduced. The Leaf has transitioned from its original hatchback styling to a crossover design, boasting a battery capacity increase of up to 25 per cent over the prior version. Nissan estimates that the top variant, equipped with a 75 kWh battery, will offer a maximum range of up to 303 miles under U.S. test conditions. Despite the impact of tariffs, a company spokesperson stated the pricing will remain competitive in the American market.
Symbolically, the Leaf continues to occupy a pivotal position in Nissan’s EV narrative. Once the world’s best-selling electric vehicle, it was overtaken by Tesla in more recent years. The model, introduced under former chairman Carlos Ghosn, embodied Nissan’s early ambition to lead in electric mobility. To date, nearly 700,000 Leaf units have been sold globally.
Chief Executive Ivan Espinosa now faces a balancing act: executing substantial cost reductions while simultaneously investing in product development. These efforts are intended to update Nissan’s ageing model portfolio and address its lack of hybrid offerings in key markets.
Espinosa has already announced sweeping restructuring measures, including the closure of seven manufacturing plants and the elimination of 11,000 jobs. These cuts are part of a broader initiative that will reduce the company’s global workforce by approximately 20,000 positions, including reductions introduced under his predecessor.
Nissan recorded a net loss of approximately $4.5 billion in the previous fiscal year and is currently contending with debt obligations totalling 596 billion yen (roughly $4.1 billion), due in the next financial year.
Production of the new Leaf will also take place at Nissan’s Sunderland plant in the United Kingdom. While both the Tochigi and Sunderland sites are expected to remain operational, there is speculation that the Oppama plant – the original production location for the Leaf – could face closure.
-Reuters
