Nissan Boss: Third-Gen Leaf "Indefinitely" on Hold as Brand Pivots away from EVs

Outgoing Nissan Oceania Managing Director Andrew Humberstone has confirmed the highly anticipated third-generation Nissan Leaf is on "indefinite" hold for Australia.

This shift marks a significant change in strategy for the automaker, which had previously prioritised the Leaf as a core component of its local electric vehicle (EV) ambitions.

Speaking to CarSauce at the launch of the new D27 Navara, Humberstone revealed the decision stems from a reassessment of the Australian market's appetite for full-battery electric vehicles (BEVs).

"I think at the moment we're indefinitely pausing our Leaf because of where the market is," Humberstone said.

In place of the all-electric Leaf, Nissan is shifting its focus toward e-Power hybrid technology.

Humberstone anticipates that this "middle ground" - comprising hybrid, plug-in hybrid (PHEV), and e-Power systems - will eventually account for approximately 75% of the total market.

The strategic pivot comes as Nissan faces mounting pressure from the New Vehicle Efficiency Standard (NVES).

Current data indicates that Nissan holds the second-largest NVES deficit in the country, with over 200,000 units in deficit.

This puts the brand behind only Mazda, which leads the deficit rankings with more than 500,000 units.

Managing this deficit is complicated by the emissions profiles of Nissan's current hybrid line-up.

Their volume-selling X-Trail e-Power produces carbon emissions of 139g/km, which exceeds the 117g/km NVES target for 2026.

Consequently, the X-Trail e-Power will not generate the credits needed to offset the brand's larger deficits.

However, the Qashqai e-Power emits just 92g/km, meaning it will help offset those deficits - provided sales volumes are high enough.

This environmental challenge coincides with a difficult period on the sales charts.

In February 2026, Nissan recorded the largest decline of any major brand, with sales falling by 50.1 per cent.

While the Pathfinder was the only model in the line-up to see a volume increase during this period, Humberstone confirmed the model is being removed from the local line-up due to exchange rate pressures and a need to streamline for profitability.

While earlier reports suggested a redesigned Leaf SUV could arrive in late 2025 or 2026, Humberstone’s comments indicate those plans are no longer on the immediate horizon.

The pause allows Nissan to focus on models that meet current consumer demand, such as the more fuel-efficient upcoming Y63 Patrol powered by a twin-turbo V6 and the D27 Navara.

Notably, the new Navara utilises a 2.4-litre bi-turbo diesel engine sourced from alliance partner Mitsubishi, a move aimed at streamlining development costs and improving efficiency over the outgoing D23.

By expanding its e-Power lineup - including new 2WD variants of the X-Trail and Qashqai - Nissan aims to offset the emissions of its popular internal combustion models without relying on low-volume BEVs, such as the Ariya and the now-paused next-generation Leaf.

The decision marks a pivot for the Leaf nameplate, a pioneer in the global and local EV space.

Humberstone acknowledged the vehicle's quality, noting, "It's such a good car... but the timing has to be right".

This strategic "hold" will be managed by Humberstone’s successor, Steve Milette, who officially becomes Managing Director on April 1, 2026.

Milette will inherit a brand dedicated to "bridging the middle" with hybrid technology while waiting for Australian infrastructure and consumer demand for full-electric models to mature.