Nissan Launches Fresh-Faced Versa, but the Affordable Sedan Will Only Be Sold in Mexico

Car and Driver

February 25, 2026

AI-Generated Deep Dive Summary

Nissan has officially discontinued its budget-friendly Versa sedan in the U.S., ending production after the 2025 model year. However, the automaker is introducing a fresh new version of the Versa in Mexico, where it remains a bestseller. This decision highlights Nissan's shifting focus on different markets: while sedans like the Maxima and Versa are being phased out in the U.S., the subcompact segment continues to thrive in Mexico. The new 2026 Versa, built exclusively for the Mexican market, features an updated design inspired by other Nissan models. It borrows styling cues from the Murano SUV, including slim LED daytime running lights and a bold grille. Though the overall shape is similar to its predecessor, the updates aim to modernize the vehicle's appearance while maintaining its practicality. Despite these changes, technical details about the new Versa are sparse. It’s likely that the powertrain will remain unchanged from previous models, with a 1.6-liter four-cylinder engine paired with either a manual or CVT transmission. This approach aligns with Nissan’s strategy of focusing on affordability and efficiency in the subcompact segment. The decision to discontinue the Versa in the U.S., where it once struggled to compete with other budget sedans, reflects broader trends in the automotive industry. As compact cars lose popularity among American buyers, automakers like Nissan are reallocating resources to markets where smaller, affordable vehicles remain in demand. For readers interested in automotive trends, this underscores the importance of understanding global market dynamics. While the U.S. shifts toward larger vehicles like SUVs and trucks, other regions continue to favor smaller, more economical options. The Versa’s continued success in Mexico serves as a reminder of how automakers adapt their product strategies to suit different markets. This situation also highlights the growing gap in the U.S. market for affordable subcompact sedans under $20,000. With the Versa exiting the U.S. lineup after 2025, buyers seeking budget-friendly options may find limited choices moving forward. For now, Mexico remains a key

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Originally published on Car and Driver on 2/25/2026