Japan’s troubled automaker Nissan banks on hybrid EV technology

30 May 2025

YOKOSUKA, Japan: Facing mounting losses and global restructuring, Japan’s Nissan Motor Corp. is turning to its unique “e-Power” hybrid system as a potential lifeline — especially in the U.S. market, where tariff headwinds and sluggish sales have rattled Japanese automakers.

Unlike conventional hybrids such as Toyota’s Prius, e-Power vehicles always run on electric drive. A gasoline engine charges the battery, but the wheels are powered solely by an electric motor. The result is a smooth, quiet ride without requiring external charging — drivers refill the gas tank.

“Nissan has a proud history of pioneering innovative technology that set us apart,” said Eiichi Akashi, the company’s Chief Technology Officer, during a demonstration at Nissan’s Grandrive test facility outside Tokyo.

The technology has already been rolled out in models like the Note in Japan and the Qashqai and X-Trail in Europe. Nissan now plans to bring the upgraded version of the Rogue SUV to the United States.

The company needs a hit. For the fiscal year ending March, Nissan posted a $4.5 billion loss. With competition intensifying and rising trade friction — including tariffs imposed under President Donald Trump’s administration — Japanese automakers are under pressure to cut costs and refocus.

Nissan is now undergoing a sweeping overhaul led by its new CEO, Ivan Espinosa. The plan includes slashing 20,000 jobs globally, cutting its number of plants from 17 to 10, and narrowing its vehicle lineup.

E-Power is positioned as a key piece of that recovery strategy — offering an electrified driving experience without the need for charging infrastructure. Nissan has not released pricing for its upcoming models using the technology.

Beyond e-Power, the automaker is also developing solid-state batteries, which are expected to eventually replace today’s lithium-ion cells in EVs, hybrids, and e-Power vehicles.

While Nissan was once seen as an electric pioneer with the launch of the Leaf in 2010, the company has struggled to maintain momentum. Analysts warn that Nissan may be running low on cash and needs a strategic partner. Rumors persist about the sale of its Yokohama headquarters or the repurposing of a domestic plant into a casino.

Talks with rival Honda Motor Co. for a potential integration were dropped earlier this year, adding further uncertainty.

Still, for now, Nissan is betting that e-Power — and a leaner business model — can help drive its long-awaited turnaround.

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