25.12.2025 07:05
Rising costs and changing consumer preferences in the global automotive industry are narrowing the affordable vehicle segment. Nissan has announced that it will cease production of the entry-level Versa in the U.S. by the end of the year. With this decision, the era of new cars priced under $20,000 is coming to an end, and the title of the cheapest new car has passed to the 2026 Hyundai Venue.
Recently, the increase in production costs and the changing expectations of buyers are leading automobile manufacturers to change their strategies. Among those most affected by this transformation are entry-level models with low profit margins.
PRODUCTION WILL END BY THE END OF THE YEAR
According to a statement from Nissan, the production of the Versa will end by the end of the year. With this step, a new era of cars sold in the U.S. market with a starting price below $20,000 will effectively come to a close. It is noted that a similar decision was recently made for the Mitsubishi Mirage, and options in the entry-level segment are rapidly decreasing.
THEY WILL FOCUS ON MID-CLASS SEDANS
The company aims to redirect its resources to more profitable product groups. Nissan's future focus will be on mid-class sedans like the Sentra and Altima, as well as compact SUV models like the Kicks. With the withdrawal of the Versa from sales, the brand's most affordable new vehicle in the U.S. will be the Kicks Play, priced at $22,910.
"THE TITLE OF THE CHEAPEST NEW CAR" HAS CHANGED HANDS
With the departure of the Versa from the market, the title of "the cheapest new car" has also changed hands. Currently, this title has passed to the $22,150 2026 Hyundai Venue. In the sedan category, the most economical option stands out as the $23,385 Kia K4.
Industry experts emphasize that manufacturers are increasingly moving away from entry-level vehicles due to low profit margins. It is stated that brands are shifting their investment focus to segments that provide higher income, such as SUVs and electric vehicles. This situation makes it difficult for new vehicle prices in the U.S. to generally fall below the $22,000-$25,000 range, leading to a narrowing of options for budget-conscious buyers. Among the most affordable models currently available in the U.S. market are the $22,150 Hyundai Venue, the $22,910 Nissan Kicks Play, and the $23,385 Kia K4.