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Nissan Bets on Hybrid Tech to Offset Tariff Pressures

Christopher Yarborough by Christopher Yarborough
May 26, 2025
in Business
Cross-sectional view of a Nissan hybrid car showing internal components and structure.

The Japanese automobile company Nissan relies on new hybrid vehicles to transform its business operations while dealing with increasing U.S. tariff barriers for market share recovery.

Nissan introduces “e-Power” technology that operates with a hybrid drivetrain which drives through electric motors while gasoline engines recharge batteries. The e-Power vehicle operates with electric drive only through its motor system and uses combustion power to replenish battery energy. The e-Power system produces a constant quiet operation which requires no plug-in charging.

Chief Technology Officer Eiichi Akashi declared at a media event near Tokyo that Nissan takes pride in its status as a pioneer of innovative technology. This technology sets us apart.”

The current strategy emerges at a vital juncture. The company reported a $4.5 billion loss during its last fiscal year through March and needs immediate success from high-volume sales especially in North American markets. The U.S. market which served as the main profit generator for Japanese automakers now presents mounting difficulties because of President Donald Trump’s extensive trade restrictions.

The automotive industry faces two major challenges because of the 25% steel and aluminum import duties while new vehicle and parts tariffs pose a potential threat. The Trump administration uses trade policies as an economic tool to increase domestic production which forces international brands to expand their U.S. manufacturing operations.

Nissan launches e-Power as its new attempt to stand out in the competitive market where it has lost ground to Toyota and Honda. The company plans to market these hybrids as convenient transitional vehicles for people who want to avoid electric cars but still want to reduce their fuel consumption.

The hybrid cars in Japan have proven successful because they provide efficient fuel usage without requiring users to charge their vehicles. Nissan seeks to introduce the same successful hybrid sales model in both the U.S. and certain European markets.

The company requires more than innovation to achieve recovery since its success depends on trade dynamics and pricing strategy and consumer acceptance during this changing regulatory period.

Tags: Hybrid CarsNissan
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