Something infinite is supposed to go on forever, but Nissan’s luxury vehicle nameplate is on the ropes. INFINITI has gone from a big name in automotive luxury to an afterthought. In 2017, INFINITI set a U.S. high mark by delivering 153,415 vehicles. But by 2024, the number had dropped to 58,070, a decline of over 62%. The downward trend continued in the first quarter of 2025, with INFINITI delivering 5.3% fewer vehicles than the same period the year before.
While potential new tariffs have further impacted the brand, the wheels were already in motion to cut certain vehicle models from the U.S. market and make other changes. The fall has been stark for an automaker that, while maybe not the biggest star of the luxury class, was certainly a major player. How did this happen, and what is Nissan doing to rescue its luxury marque from potential oblivion?
What Has Caused INFINITI’s Decline?
First, let’s recap how INFINITI ended up in this sorry state. Four main factors seem to have led to INFINITI’s plummet.
Increasing Competition
There has always been a lot of competition in the luxury market, from the German trifecta of BMW, Mercedes-Benz, and Audi to INFINITI’s fellow Japanese luxury divisions like Acura (Honda) and Lexus (Toyota). However, this has intensified in recent years. Hyundai has added the Genesis luxury brand. Longtime automakers like Porsche and Kia have emphasized the luxury segment. New players have emerged, such as Tesla, Lucid, and Polestar.
INFINITI is struggling to compete against this crowded field, and they’ve had trouble establishing a unique brand identity to separate themselves from the pack. This is part of why INFINITI pulled out of the Western Europe, Australia, and New Zealand markets in 2020 while moving its headquarters from Hong Kong back to Japan.
Dated Vehicles
The “luxury” designation implies a vehicle has top-of-the-line performance, amenities, and style. However, INFINITI has drawn heavy criticism for not living up to this classification. Consumers complain that the vehicle designs and features feel dated compared to other contemporary luxury options. The automaker has also been slow to develop and release new vehicles, and it was slow to start work on EVs. As such, INFINITI hasn’t kept up with evolving consumer preferences and demands. With so many choices available, modern car companies can’t afford to stagnate, especially when asking a pretty penny.
Renault’s Shrinking Role and Mercedes-Benz’s Departure
When Renault and Nissan formed a technical, strategic, and shareholding alliance in 1999, it helped rescue Nissan from bankruptcy and gave INFINITI a huge boost. However, the collaboration level has decreased in recent years, and Renault now has a much lower equity stake in Nissan. Reports broke in late 2024 that INFINITI/Nissan was looking for a new investor or partner to replace Renault, but it remains to be seen if they find one. Also, Mercedes-Benz was supplying engines for some INFINITI vehicles in the 2010s, but that partnership ended, and the in-house INFINITI engines haven’t done as well.
Nissan’s Struggles
While this article is about INFINITI, we must acknowledge that its parent company is also in trouble. Nissan reported a staggering loss of $4.5 billion in 2024. (That’s billion with a B.) Things are so bad that in late 2024, it was reported there were serious talks of a merger between Nissan and Honda. Those talks cooled after Nissan rejected a proposal to become a subsidiary of Honda. Still, the fact that the talks even happened shows the state Nissan is in, and INFINITI by extension.
How Is INFINITI Responding?
Now that we’ve reviewed why INFINITI ended up in crisis, let’s look at what they’re doing to respond. Since late 2024, INFINITI has announced several moves to try and reassert itself on the luxury scene.
Merging INFINITI and Nissan Dealerships
The most notable announcement came in December 2024, when Nissan announced it would allow some standalone INFINITI dealerships to “co-locate” with Nissan stores. Shared locations would be approved on a case-by-case basis, and the INFINITI portion must have a separate entrance and sales team while offering a luxury showroom, lounge, and service experience.
The news was controversial to some, with the argument being that it went against another stated goal of separating INFINITI from Nissan in the eyes of customers. However, it appears the move was necessary for short-term survival. At the time of the announcement, U.S. INFINITI dealers were selling an average of 24 vehicles per month, which isn’t anywhere near enough to be profitable. Some dealers were reportedly losing over $2 million a year. Joint locations reduce overhead and allow INFINITI to remain in certain markets. This shared dealership approach has been used successfully in Canada, and hopes are that it will offer temporary relief to U.S. sellers.
Cutting or Not Importing Models
Even before other news developments, INFINITI was already planning to discontinue some vehicle models. In early 2025, INFINITI revealed at the National Automobile Dealers Association conference that it would stop producing the entry-level QX50 and QX55 compact crossovers without obvious replacements. Previously, INFINITI had dropped the QZX50 sedan, leaving it with an all-crossover lineup. The official reasons given for the discontinuations were that the vehicles were dated, and INFINITI wanted to focus on new projects. At the time, INFINITI said it would produce enough of these crossovers for dealers to sell through the summer of 2026.
However, the burgeoning tariff wars altered these plans. The two vehicles in question are built in Mexico, and in April 2025, President Donald Trump declared new 25% tariffs on vehicles imported from Mexico and other countries. In response, INFINITI said it would no longer take U.S. orders for the QX50 or QX55, but continue producing them for markets like Canada and the Middle East. Undoubtedly, INFINITI determined that the already-low sales (together, they sold less than 15,000 vehicles stateside in 2024) would drop even further with a 25% tax, thus hastening their U.S. departure.
Updating and Adding Vehicle Models
To replace these vehicles, INFINITI is taking the long-overdue step of updating some existing vehicle models and offering new options. For the 2025 model year, INFINITI redesigned the QX60 midsize and QX80 full-size crossovers. The QX60, which is the company’s most popular vehicle, received a new engine, several more premium features on the Luxe trim level, and a stylish Black Edition. The third generation of the QX80 finally debuted after 14 years, with a revamped powertrain and chassis, a modern exterior, and substantially upgraded tech. Both vehicles are receiving limited-edition Sport trim levels for 2026 that give them high-performance styling.
INFINITI also has new luxury vehicles in the pipeline. The INFINITI QX65, a midsize SUV first previewed in 2023, is expected to arrive for the 2026 model year. It will have styling elements of coupes and the QX80 while offering two rows of seating. Finally, INFINITI has confirmed its first EVs are on the horizon, though there currently isn’t a release date. The Vision Qe fastback sedan and Vision QXe crossover will help determine whether the brand can be successful in the long term.
Looking to the Future of INFINITI
In its recent conference appearances and announcements, Nissan has made it clear that it isn’t giving up on INFINITI as a luxury brand. I certainly give them credit for trying to right the ship, and belated moves are better than no moves. Even in the best circumstances, though, this may be a situation where things get worse before they improve, especially with Nissan’s larger issues.
