Nissan Says 2028 Xterra Will Start Below $40,000 With V6 Power

Nissan has attached an unusually specific price ceiling to an SUV whose final equipment list remains undisclosed. Nissan Americas chairman Christian Meunier says the returning Xterra will start “below $40,000,” combining that target with body-on-frame construction and V6 power for the 2028 model year.

The commitment places the Xterra just below the roughly $40,000 entry prices of the four-door Jeep Wrangler, Ford Bronco and Toyota 4Runner. It could give Nissan a clear opening among buyers seeking a conventional, off-road-oriented SUV without moving immediately beyond that threshold. The critical unknown is what Nissan will include in the least expensive version and how far below $40,000 its actual price will land.

A simpler equipment strategy

Meunier described the Xterra’s product formula as “everything you need and nothing you don’t.” He said Nissan had “lost our way a little bit” by adding technologies and features “for the sake of it,” adding, “We’re going to stop doing it.” In his description, the Xterra will symbolize that change.

That approach is central to the price target. Body-on-frame vehicles require a truck-style underlying structure suited to towing, load carrying and rough-road use, but the architecture alone does not determine affordability. Interior electronics, comfort equipment, driver-assistance hardware, trim complexity and available option packages can substantially change the cost and positioning of a vehicle.

Nissan has not identified which features it considers nonessential, nor has it detailed the Xterra’s standard infotainment, driver-assistance, four-wheel-drive or off-road equipment. A lower advertised base price carries the most practical value when the entry model includes the hardware buyers expect from the vehicle’s intended role. Until the configuration is released, the sub-$40,000 figure is a product target rather than a complete value comparison.

The statement nevertheless advances an earlier indication from Nissan. Senior vice president Michael Soutter said last November that the Xterra “has got to start” below $40,000. Meunier has now reiterated that threshold more directly as the company prepares the vehicle’s return.

Two V6 powertrain paths

Nissan says the new Xterra will retain a conventional V6 engine and will also offer a hybrid V6. That gives the company two powertrain paths: a traditional version that can support the lowest entry price and a more complex electrified alternative.

The exact engines, transmissions, outputs and fuel-economy figures remain unannounced. The Frontier pickup’s 3.8-liter V6 is a plausible candidate for the conventional model, but Nissan has not confirmed it for the Xterra. In the 2027 Frontier, that engine produces 310 horsepower and is paired with a nine-speed automatic transmission. Those Frontier specifications should not be treated as Xterra specifications before Nissan publishes the production configuration.

The hybrid V6 could broaden the Xterra’s appeal, but it also introduces a likely pricing and packaging distinction within the range. Nissan has not said whether the hybrid will emphasize efficiency, output or both, and it has not disclosed where that version will sit in the trim structure. The company’s starting-price promise therefore applies most clearly to the range as a whole, not necessarily to the hybrid model.

A 2028 model with major details still open

The Xterra is expected to debut sometime in 2027 before reaching customers for the 2028 model year. Nissan has released a single teaser image showing a chiseled hood, thin accent lighting above the grille and prominent “NISSAN” lettering, but dimensions and production specifications remain under wraps.

The timing leaves Nissan room to resolve the engineering and equipment balance behind its price pledge. Its principal rivals already occupy the same rugged, four-door SUV category, so a modest nominal discount alone may not separate the Xterra. The comparison will depend on standard equipment, drivetrain hardware, powertrain output and the gap between the base model and more capable trims.

For now, Nissan has established the boundaries of its intended formula: body-on-frame construction, conventional and hybrid V6 choices, and an opening price below $40,000. The production reveal must show whether “nothing you don’t” removes costly excess or equipment buyers consider essential.

By Thomas Caldwell — AMI’s senior editor for mechanical and mobility engineering, covering vehicle electronics, systems integration, electrification, chassis systems, propulsion, and safety policy.