Nissan prioritizes plug-in hybrid ute development

Nissan is prioritizing the development of a plug-in hybrid ute, according to Nissan Oceania managing director Steve Milette. High diesel prices are weighing on Navara sales, and the company wants to bring a plug-in hybrid ute to market “as soon as possible”.

Milette stated that diesel prices have had a huge impact on the ute market. He believes there is still a market for diesel, but some customers have put their purchases on hold due to the current prices.

According to VFACTS sales data, 4×4 ute volume fell 16.9 percent to 94,346 units between March and August compared to the same period last year. In contrast, plug-in hybrids are gaining popularity, with sales on the rise.

Nissan is looking to capitalize on this trend by bringing its utility plug-in hybrid to market as soon as possible. Although Milette did not specify which model the plug-in hybrid would be based on, it is no secret that the China-sourced Frontier Pro is very much in Nissan Oceania’s crosshairs and could receive the Navara nameplate if and when it arrives Down Under.

The D27 series Navara has not performed as well as expected, but sales have improved after pricing changes. Milette stated that sales had doubled from July to the present, with 1010 Navaras sold between April and July.

Nissan had launched the Navara with a limited line-up, targeting the highest-volume parts of the market. The company has also had success moving existing owners into the new D27 series on a “payment to payment” basis.

Market Trends

Milette believes that the current market trends are a result of the perfect storm created by the conflict in the Middle East, the availability of Chinese-built vehicles, and energy security fears. However, he expects the market to settle and revert to the mean at some point.

The spike in electric vehicle sales may not be sustainable, and Milette thinks people will look for diversified powertrains, including hybrid and high-quality fuel-efficient petrol engines. The Ariya electric medium SUV remains on sale, but sales have been disappointing, with only 203 units sold in the first seven months of 2026.

Nissan is increasing its marketing efforts for the Ariya and entering new channels, including novated leasing, which Milette described as “huge”.