'Sub-$40,000:' The New Nissan Xterra Should Be Affordable

With a new Xterra on the horizon, Nissan says its new off-roader should stay under $40,000.

Photo by: Theophilus Chin | Motor1

By: Jeff Perez

Nov 21, 2025 at 2:15pm ET

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We’re pretty hyped about the return of the Nissan Xterra. This rugged SUV has been off the market since 2015, but Nissan has already confirmed its revival in the coming years. Even better, the company aims to keep its new Xterra affordable.

In a recent interview with The Drive at the Los Angeles Auto Show, Nissan SVP Michael Soutter said the new Xterra "has got to start sub-$40,000." That would put it in direct competition with other rugged SUVs, including the Ford Bronco, Jeep Wrangler, and Toyota 4Runner.

Perhaps most importantly for Xterra fans, though, is the color. Soutter added that the SUV "has got to come in yellow." While it could borrow Yuzu Yellow from the current Kicks, we hope Nissan goes above and beyond developing a new shade reminiscent of the original Xterra.

Nissan has previously indicated that the new Xterra will be a true body-on-frame off-roader, sharing its platform with the current Frontier pickup. It will even be built alongside the Frontier at Nissan’s factory in Canton, Mississippi.

2028 Nissan Xterra Rendering by Motor1

Photo by: Theophilus Chin | Motor1

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We expect it to use a version of the Frontier’s 3.8-liter V-6 engine, currently rated at 310 horsepower and 281 pound-feet of torque, though a hybrid option isn’t out of the question. Soutter also confirmed that the Xterra will feature a two-speed transfer case with 4Lo and emphasized that it has to be "fun, simple, and capable."

While an official debut date hasn’t been announced, the Xterra could appear sometime in 2027, with sales starting for the 2028 model year. Whatever the official timeline may be, anticipation is high for the Xterra’s return.