TOKYO - Nissan Motor Co. said Wednesday it is set to launch a new compact sport utility vehicle featuring its latest hybrid system, in a bid to boost its sluggish domestic sales.
The launch of the Kicks, scheduled for Thursday in Japan, will mark the vehicle's first full model change since its debut in the country in 2020.
The car's starting price will be set at below 3 million yen ($18,700), roughly in line with rival models, including Toyota Motor Corp.'s Carolla Cross and Honda Motor Co.'s Vezel, as competition in the compact SUV market continues to intensify.
Nissan posted a 13.5 percent drop in domestic sales in the year ended March, the largest fall among major markets.
"The model serves as a key strategic vehicle for delivering the value of electrification technologies to more customers, while also playing an important driver of Nissan's growth," said Akira Sugimoto, Nissan's corporate executive responsible for Japan marketing and sales, at an unveiling event held in Tokyo.
Nissan's third generation e-Power hybrid system, making its debut in the Japanese market, ensures the engine is used only to generate electricity. The motor, meanwhile, powers the vehicle, improving fuel efficiency and giving customers a quieter driving experience similar to driving an electric vehicle.
"Fuel efficiency has improved by more than 10 percent compared with the current Kicks, including in highway driving," said Satoru Tanaka, chief product specialist of Nissan.
The exterior was designed to be powerful, with the front inspired by an American football helmet, Nissan said, while cargo space usability has been improved through a wider opening and increased capacity.
The automaker did not disclose a sales volume target for the new model but plans to launch it overseas.
The new Kicks has been produced at Nissan's flagship Oppama plant in Kanagawa Prefecture, where vehicle production is set to end by March in 2028 under the company's restructuring plan, with operations to be transferred to a factory in southeastern Japan.
After the event, Sugimoto said sales in the Japanese market have been gradually recovering, citing regained momentum following the launch of the Roox minicar last fall, while the new Leaf has also been well received.
"We hope to sustain that momentum and further strengthen it with the new Kicks," Sugimoto added.
