Nissan’s new hybrid powertrain promises EV-like benefits but costs a bomb. What makes it so expensive?

Nissan is working on a new hybrid powertrain for its cars that is expected to go on sale in the North American markets soon. The Japanese car manufacturer that has been sailing through troubled waters for quite some time had initially promised to bring hybrid cars that would offer cost parity with petrol models. However, now it has been revealed that its new hybrid cars, which will come promising electric vehicle-like benefits, will cost significantly more than their pure ICE-powered counterparts.

Nissan’s hybrid system, dubbed e-Power, has been on sale in other parts of the world for some time. Currently, in its third generation avatar, the Nissan e-Power hybrid powertrain comes as a 5-in-1 system, which combines the electric motor, inverter, generator, reducer and increase into a single module. The OEM claims that this integration helps in reducing weight, boosts efficiency and helps minimise noise and vibration as well.

The new Nissan e-Power system enables the internal combustion engine (ICE) to act as a generator to charge the battery pack, and it powers the wheels. This mechanism is in contrast with other hybrid powertrains where battery and electric motors supplement power from the engine, which is routed to the ground directly. Hence, the new e-Power is a different take on hybrid powertrain technology. The new e-Power technology acts in a manner that is more commonly found in diesel trains and a few cars, but Nissan is bringing it to the mainstream passenger vehicle powertrain technology.

While this can offer benefits like electric vehicles, it is expected to be significantly costlier than other hybrid powertrain technologies. Back in 2023, Nissan debuted the e-Power and claimed that it would arrive at a price point that reflects what many competitors offer with petrol power alone. The automaker claimed that it would be a huge win in terms of value proposition. However, now Nissan is backtracking on that.

Auto News has quoted Shunichi Inamijima, Nissan’s corporate executive in charge of powertrain and electric vehicle technology, saying that the new plan is to sell above the promised price tag, but only because of increased prices for materials that go into it. “We still want to realise cost parity as soon as possible," Inamijima reportedly said. However, the Nissan official didn't reveal any timeline for the launch of this technology.

Will Nissan bring e-Power technology to India?

Nissan Motor India teased its upcoming products a few days ago, which include a compact SUV and a B-segment seven-seater MPV. The auto company had first revealed both products in March 2025. The company noted that the new MPV is scheduled to launch in 2025 as a brand-new addition to the India product portfolio. Meanwhile, the five-seater C-SUV (compact sports utility vehicle) will be launched in early 2026.

The SUV will compete with the likes of Hyundai Creta, Maruti Suzuki Grand Vitara, Skoda Kushaq and others. Nissan Motor India said that it is on target to have four products by FY26 for Indian customers in the B/C and D-SUV segments. In the meantime, the MPV will compete with the Renault Triber.

Considering the higher cost of the e-Power technology, it is unlikely that Nissan would introduce this system into the upcoming models that have already been confirmed for India launch. However, in future, if the market evolves to the right condition for the brand, we may see Nissan bringing this technology to the Indian passenger vehicle market.

Check out Upcoming Cars in India 2025, Best SUVs in India.