In a bold move diverging from its Japanese counterparts, Nissan has effectively halted new investments in internal combustion engine (ICE) technology.
This announcement stands in stark contrast to the strategies of Toyota, Subaru and Mazda, who continue to innovate with next-generation electrified combustion engines .
Seen by some as a move designed to reclaim its status as a battery electric vehicle (BEV) pioneer, Nissan’s decision signals a firm commitment to a future dominated by electrified transport.
A clear vision
During an interview with Australia's Drive magazine, Francois Bailly, Nissan’s Senior Vice-President and Chief Planning Officer for the Africa, Middle East, India, Europe and Oceania (AMIEO) region, unequivocally stated, “Our future is EV. We're not investing in new powertrain for ICE, that's for sure.”
Nissan's Ariya electric SUV has kept the brand relevant in a competitive EV market, but it will need more to compete with its Japanese rivals. The Leaf's highly anticipated 2026 return might do the trick, provided it meets lofty expectations.
Nissan's e-Power solution
While Nissan phases out conventional engines, the transition will be facilitated by the company’s innovative e-Power system. It's the same one underpinning vehicles like the X-Trail and Qashqai.
Unlike traditional hybrids, e-Power employs a combustion engine solely as a generator to charge the battery, rather than to drive the wheels.
This series hybrid system resembles Mazda's rotary engine in the MX-30 SUV and the twin-rotor setup in the Iconic SP sports coupe concept.
But the focus here is on enhancing thermal efficiency, aiming for an ambitious 50 per cent. This would be a significant leap, especially considering that Toyota’s Dynamic Force engines have already surpassed 40 per cent efficiency.
Beyond Japan, Chinese giant BYD recently unveiled its next-generation DM-i hybrid system, boasting an industry-leading 46 per cent thermal efficiency that helps deliver up to 2100km of range.
Despite Nissan closing the door on pure ICE development, the company concedes that a complete transition to EVs will not occur overnight.
Bailly highlighted that global emissions regulations vary widely. For instance, in Africa, Euro 2 standards still apply, permitting older technology to remain in use.
Consequently, Nissan will continue to refine its existing engines to meet evolving regulatory demands. This gradual phase-out aligns with the practicalities of different regional markets, ensuring compliance while progressively shifting towards electric propulsion.
A different strategy
In contrast, Toyota, Subaru and Mazda are exploring ways to sustain ICE by adapting it to nearly carbon-neutral fuels.
Toyota is developing three inline-four engines (one of which might make its way to a new MR2), while Mazda has dedicated a team to rotary engine advancements. Subaru, meanwhile, is preparing a new hybrid system centred around its boxer engine.