Here's How Nissan Will Build a Sub-$40k Body-on-Frame Xterra SUV
After an extended period of turmoil, Nissan is finally showing signs of a comeback, cutting underperforming models and launching new ones that should hold strong appeal. Among them is a new Xterra SUV, and Nissan has confirmed it will cost less than $40,000, making it a serious contender in the space occupied by the Ford Bronco and Jeep Wrangler.
According to CarBuzz, Nissan Americas boss Christian Meunier said, "We're at a time when the average transaction price in the U.S. is $48,000, and it's non-sustainable... [Nissan is] going to bring an Xterra below $40,000." So how will Nissan pull this off? Several ideas will be implemented, some of which the likes of Ford and Jeep have already implemented to great effect.
How Nissan's New Xterra Will Be Affordable: Simplicity and Siblings, Including Infiniti SUV
The Nissan Americas CEO said the company has lost its way by putting a lot of technology into cars just for the sake of it, "adding a lot of features and cost" for little return, but with the Xterra, things will be different. "We're going to stop doing [that]," said Meunier. "And 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, which is the slogan that was used in 2002, which we believe is right for the brand."
The Jeep Wrangler has maintained its status as an icon by focusing on only the elements its customers want, not overcomplicating the vehicle with high-tech features that most may never even use. But this simplistic approach is not the only strategy Nissan will employ to keep Xterra costs down.
Related: Nissan Is Getting Serious About Bringing the Silvia Back
Just as the Ford Bronco shares its body-on-frame platform with the Ranger and Everest, Nissan's body-on-frame platform will underpin as many as four other SUVs, with V6 and V6 hybrid powertrains helping boost appeal against the four-cylinder Toyota 4Runner. One of the new vehicles expected on this architecture will be a new Infiniti off-roader, revealed Nissan Americas Chief Product and Planning Officer Ponz Pandikuthira: "So at this point, all we can say is, if Xterra, which has a clear position already in the marketplace of a rugged everything-you-need-nothing-you-don't-type SUV for Nissan, the Infiniti version will have to be separated from it, much like QX80 is separated from Armada."
Autoblog's Take on Nissan's Affordable SUV Plans
Nissan's new Xterra is only due in 2028, and plenty can change between now and then, but looking at the pricing of the SUV's would-be rivals today, Nissan could have a popular hit on its hands if all goes to plan. The Toyota 4Runner starts at $41,870, the Ford Bronco at $39,995, and the Jeep Wrangler at $39,040. If Nissan can launch its "badass" SUV in the same ballpark, it will be able to entice former buyers back to the brand and foster a new generation of enthusiasts.
This new body-on-frame SUV, new sports cars, and new sedans could be the catalysts Nissan needs to mount a real challenge to its rivals in the U.S. But the automaker will need to work harder than ever-even Hyundai is working on rugged SUVs, and Kia is launching a midsize pickup in America too, which will almost definitely be complemented by an SUV at some stage.
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This story was originally published April 20, 2026 at 6:15 AM.