Nissan has confirmed internal combustion engines (ICE) will remain part of its Australian line-up for as long as possible. While hybrids and EVs are the growth story, Nissan sees ICE as an opportunity to win over buyers abandoned by rivals.
Speaking at the launch of the 2025 Nissan Ariya EV, the brand's Managing Director Andrew Humberstone said its strategy is being shaped by customer demand, not internal production targets.
“There’s opportunity where other OEMs have exited ICE product… that becomes conquest business [for us]” said Humberstone.
“Hybrid, electric; that journey is being forced globally,” he added. “But respecting consumer demand is critical. Or else you become a small business, selling niche product… and we’ve seen a lot of that.”
The exec admitted “there’s a role for ICE still for a while” and argued that electrification uptake will be “at a slower pace than we’ve seen in other markets”, due to Australia’s unique landscape.
“It’s a mindset shift,” he said, pointing out that range shouldn’t be a concern for most drivers who travel fewer than 100km a day. Yet buyers continue to compare total EV range against their petrol counterparts when he argues that “it’s like comparing apples and pears.”
The strategy contrasts with the likes of Toyota, which has moved its passenger line-up towards hybrid-only powertrains. Corolla, Camry, Yaris Cross and RAV4 are now exclusively hybrid, while brands like Honda and Hyundai are pivoting sharply towards hybridisation.
Several European brands have scaled back ICE availability altogether ahead of stricter emissions standards.
Nissan says it creates an opening. Petrol mainstays like Patrol and Navara remain pillars of its line-up, particularly in regional Australia, where large SUVs and utes dominate sales. At the same time, the brand is steadily electrifying its portfolio.
Qashqai will become e-Power only from 2026, joining the new Ariya EV in spearheading the shift.
Nissan’s dual-track strategy means ICE will coexist with hybrid and electric for the foreseeable future. Hybrids are tipped to carry the bulk of growth in the short term, while EVs will gather momentum more gradually, giving Australian buyers time to adjust and join the journey at their own pace.
The rollout will also be shaped by the federal government’s New Vehicle Efficiency Standard (NVES), which is expected to accelerate the shift to lower-emission models while still leaving room for ICE in key segments.