Nissan Motor Co. has unveiled the third-generation Leaf electric vehicle in a renewed attempt to reclaim its position in the competitive EV market—a space it once led but has since fallen behind. The new model, announced on Tuesday, marks a pivotal moment for the Japanese automaker as it grapples with structural challenges, market shifts, and mounting financial pressures.
The redesigned Leaf, now configured as a crossover, features a larger battery—up to 75 kWh—offering a maximum estimated range of 303 miles in the U.S. market, a 25% improvement over its predecessor. While pricing has yet to be disclosed, Nissan has indicated that the model will remain competitively positioned despite being subject to U.S. tariffs due to production at its Tochigi plant in Japan.
The vehicle is expected to go on sale in the United States this autumn, with other markets to follow. However, industry analysts caution that the timing could pose significant risks.
“There is a high possibility this launch is happening at the worst possible time, given new tariffs and the Trump administration’s rollback of EV incentives,” said Koji Endo, senior analyst at SBI Securities. “If the new Leaf fails to gain traction, the consequences for Nissan could be serious.”
A Former Leader, Now Catching Up
Once the flagship of Nissan’s innovation drive, the Leaf debuted in 2010 and quickly became the world’s best-selling electric car—a title it held until overtaken by Tesla. The model’s symbolic importance is deeply tied to Nissan’s former ambitions under ex-CEO Carlos Ghosn, who envisioned a dominant role for the company in the electric vehicle era.
To date, Nissan has sold nearly 700,000 Leaf units globally. Yet in the years since, the company has struggled with leadership scandals, declining sales, and strategic inertia—particularly in the fast-growing hybrid segment, where it lacks a U.S. offering.
Strategic and Financial Pressures
The launch of the new Leaf comes as Nissan executes a sweeping restructuring plan under Chief Executive Ivan Espinosa. That plan includes significant cost reductions through seven planned factory closures and the elimination of 11,000 jobs—bringing total headcount reductions to approximately 20,000 when combined with cuts announced last year.
Nissan posted a net loss of approximately $4.5 billion in the most recent fiscal year and faces a looming ¥596 billion ($4.1 billion) debt obligation in 2026.
While the Tochigi facility and the company’s Sunderland plant in the United Kingdom—where the new Leaf will also be built—are not expected to be impacted by the restructuring, questions remain about the fate of older facilities such as the Oppama plant, where the original Leaf was first produced.
Hope on the Horizon?
Despite the market headwinds, Nissan remains optimistic. A company spokesperson emphasized that even with tariffs, the new Leaf’s pricing will be attractive in the U.S., a market where EV enthusiasm has recently cooled amid rising demand for hybrids.
The success of the new Leaf will be crucial not just for Nissan’s EV roadmap, but for its broader strategy of regaining relevance in a rapidly evolving automotive landscape.
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