It isn’t a good time to be selling Nissans. According to Automotive News, Nissan’s profitability for the first half of 2024 was its lowest in 15 years. As customers flock to competing brands and Nissan loses market share, 38 percent of dealers in the United States are in the red. It’s reached the point where eight of Nissan’s U.S. stores shut their doors already this year.
“Dealers are struggling more than they have in a long time,” said Auto News‘ retailer source. “We need volume, and we need volume fast.”
According to five dealerships interviewed by Auto News, who chose to remain anonymous, the volume Nissan needs is going to Honda, Toyota, and Hyundai dealerships instead. And without new car sales, every other part of the dealership business model hurts. “If you’re not selling enough new cars, you’re not generating enough trade-ins, which feed profit centers such as finance, service, and parts,” said a dealer source. Nissan franchises’ average net profit reportedly tanked 70 percent over the first half of 2024 compared to the same period last year.
If you look at Nissan’s model portfolio, it isn’t too difficult to see why customers are flocking to other brands. Most of its models in popular segments, such as midsize crossovers and affordable sedans, are getting a bit old compared to their competitors. For example, cars like the Nissan Murano and Altima look practically geriatric next to the new Hyundai Santa Fe and Honda Accord, respectively.
Another issue Nissan is facing is its lack of electrified vehicles in its lineup. Sure, there’s the Nissan Leaf and Ariya, but the former is ancient (and still uses the archaic CHAdeMO charge port) while the latter is pricey, starting at over $40,000. And there aren’t any hybrid or plug-in hybrid Nissans on sale in the U.S., either. With the demand for electrified cars increasing, in part due to their attractive incentives, Nissan’s aversion to them is hurting its sales.
According to iSeeCars executive analyst Karl Brauer, “Hybrid is the new EV, and automakers positioned to take advantage of this shift are grabbing sales and market share, while those caught flat-footed are losing both.”
However, there might be some light at the end of the tunnel for Nissan. Electrified cars should be coming in the next few years, thanks to its partnership with Mitsubishi, and the next-gen Rogue should come with a plug-in hybrid option for 2027. Sooner than that, though, the Nissan Kicks gained a substantial refresh for 2025, giving it snazzy new looks, a tech-forward interior, and the addition of all-wheel drive. And since its entry point remains attainable for so many buyers, with a starting price of just $23,220, it could be a very attractive car for young customers.
Another area where Nissan wants to improve is in its marketing, which wants to make fewer commercials with celebrities like Brie Larson and Eugene Levy and more ads that showcase its cars’ features. Nissan told dealers that, with its new products and marketing shift, sales should improve by 20% for the fiscal year that ends in March 2025.
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