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Sleeping giant awakens: New Japanese car making powerhouse takes shape as Honda and Nissan merger progresses but will Mitsubishi make it a trio to tackle BYD, Toyota, MG and more?
By John Law · 31 Dec 2024
Nissan is in dire straits and another Japanese carmaker is coming to the rescue. Forging an official bond through a memorandum of understanding in March, Honda and Nissan are now taking steps towards a ‘business integration’ — that means a new holding company led by Honda executives will likely sit above the two brands.Mitsubishi, Nissan’s ongoing alliance partner, also expressed an interest in joining Japan’s nascent automotive giant. Nissan's other alliance partner Renault elected to keep distance from the Japanese arrangement. Not everyone is so sure the new deal is a good one, including outspoken former Nissan Boss Carlos Ghosn. Investors have also cooled on their initial excitement, with Nissan stock dropping 7.8 per cent late last week.Distinct from The Alliance, the new arrangement will see Nissan and Honda merge under a new, as-yet unnamed holding group. The deal is tipped to be finalised by August 2026 and the new company will be listed on the Tokyo Stock Exchange (TSE). Mitsubishi’s involvement in the new company will be decided by January 2025. This is a response to Nissan’s current position, with the company battling sales declines, shrinking profits and huge debts. Specifically, China is the main target, with Nissan’s sales in the country down 50 per cent last fiscal year. New, electrified and ‘software-defined’ products are desperately needed. Banding together won’t see Nissan and Honda outsell Toyota, which delivered over 11 million vehicles last year. Still, with Honda’s 3.8 million unit and Nissan’s 3.4 million unit projections, the pair will be close. Add Mitsubishi’s circa-900,000 sales and that’s over 8.0 million. Honda will have a controlling share in the new group, being Japan’s second-biggest carmaker and the larger company of the three. It also has more stable financials than Nissan. In short, working together should see Honda and Nissan share vehicle platforms and technology investment, giving the two brands greater operational efficiency. The goal is to have a combined sales revenue exceeding 30 trillion yen (A$300 billion) and a healthy 10 per cent operating margin. The change in arrangement will see Honda and Nissan working closely but will not preclude the brands from continuing relationships with the likes of General Motors and Renault, respectively.In Ghosn's eyes, the deal stands to stem Nissan's losses, yet does not offer clear advantages in terms of technology, supply chain or platform. Neither company has a strong foot hold in China, for example, yet they compete fiercely in other markets such as the US and Europe.“It doesn’t make sense ... the first thing you look at when you want to envision an alliance is complementarity between the two partners. When I look at Honda and Nissan, I see none,” Ghosn commented from Beirut, Lebanon.Honda's engineering excellence lays mainly in combustion engines and it will forever be the bridesmaid in the hybrid game. The cutting edge Insight beat Toyota to market with a hybrid yet it failed to have the cultural impact the Prius did. Honda then didn't persevere with hybrids in passengers cars in the same way Toyota did.The brand's electric cars have struggled, too. The Honda e ended up being a quirky curio, while the North American-market Prologue and (critically panned) European market e:Ny1 haven't blown the competition away.Nissan was, on the other hand, early to the electric car game with the Leaf yet did not progress the technology as fast as new Chinese carmakers have since. The Ariya is its lone electric car though an all-new Leaf is coming in 2025 or 2026.Game-changing solid state batteries are also in Nissan and Honda's future arsenals, which could turn the game around in the eventual merged company's favour.
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How are they all going to survive? Big US style pick-up trucks, utes, 4WDs and Australia's favourite brands that will struggle under NVES | Opinion
By Tom White · 22 Dec 2024
Modern emissions regulations are finally in force in Australia thanks to the introduction of the much-discussed New Vehicle Efficiency Standards (NVES).In force from January 2025, the new legislation catapults Australia’s emissions laws from the 1980s into the 21st century, essentially harmonising our standards (for C02, at very least) to the emissions regime in Europe.From this year until 2029 an ever tighter fleet C02 average will be imposed on automakers in Australia.It may initially seem this could limit the choice of models available to consumers, but it will instead serve to change the dynamic that local distributors and factory-backed outfits have with their respective factories, opening access to models, which before were unavailable, or are actually more suited to sync up with strict Australian Design Rules (ADR) or the safety standards imposed by our local crash-test body, ANCAP.The legislation is also specifically designed to stamp out the practice of using Australia as what some describe as a “dumping ground” for old-technology engines, which are otherwise only sold in developing markets.The light-speed introduction of the rules from virtually nothing won’t be without casualties. Some vehicles, even perennial favourites in Australia, are under threat from these new rules. Some manufacturers are well prepared with a range of hybrids and EVs to help bring their fleet average down, others are scrambling for solutions to improve their otherwise comparatively high-polluting vehicle line-ups.To be clear, these brands will continue to be able to sell these high-emitting engines. It’s not an outright ban. Some V8s, V6s, big capacity four-cylinders and diesels will continue to be sold, so long as their manufacturers are able to sell enough electric vehicles, hybrids and plug-in hybrids to bring their total fleet average down. The only other option? Pay the fines, which could mean the costs are passed on to consumers.So, which brands are most exposed from 2025 onward, and what are they doing about it? Let’s take a look.Isuzu is enormously popular in Australia considering it sells just two vehicles, the D-Max ute and MU-X SUV. The problem is both models are largely famous for their rugged 3.0-litre four-cylinder turbo diesel engine sourced from the brand’s light commercial truck range.This high-emitting engine, plus the fact that Isuzu doesn’t have a range of passenger cars, hybrids or EVs to fall back on as part of its international range, means the Japanese stalwart might be the most at-threat of any mainstream brand in Australia right now.So what’s the plan? Isuzu has already introduced the smaller and more emissions-friendly 1.9-litre four-cylinder engine from its Thai range, which looks to be followed up by its recently-announced 2.2-litre four-cylinder big brother.Lighter, cleaner, and potentially equipped with 48-volt mild hybrid technology, this engine could buy Isuzu the time it needs to get its EV ute plans off-the-ground.Even though Ford remains one of Australia’s most popular brands, this popularity is almost entirely due to just two models, the Ranger and Everest, both are powered by relatively high-emitting diesel engines. To make things worse for Ford, its lower-emitting Euro-sourced SUVs don’t seem to sell in Australia (in fact, the underrated Puma and Escape were both discontinued here recently).Its only other popular vehicle, the primarily V8-powered Mustang, certainly doesn’t help the equation, and uptake has been tame for the Mach-E electric SUV. Ford cancelled its plans to launch the promising Puma Gen-E in Australia, which it seems simply can’t compete with Chinese alternatives on price.What’s Ford doing about it? As is the case in Europe, it is leaning more heavily into its commercial vehicles. It has introduced a range of electric and hybrid Transit vans in hopes fleet customers will take up the low-emissions volume it needs to off-set its utes, which are overwhelmingly popular with private buyers.The Ranger PHEV will also no doubt help, but could have limited appeal with its specs not looking impressive compared to the recently-launched BYD Shark 6.Jeep is another brand full of big and off-road focused vehicles, which look set for a headlong clash with NVES rules.The brand’s 3.6-litre naturally-aspirated V6, which still lives in some of its vehicles, is a comparative dinosaur of a unit. It provides the old-school combustion thrills its audience is looking for, but the problem is it emits well in excess of the 140g/km requirement to avoid NVES fines.Unlike some of its rivals, Jeep is at least having a red-hot go at introducing plug-in hybrids and electric vehicles, with the Avenger electric small SUV recently landing in Australia.On top of that, as CarsGuide currently understands the situation, NVES is measured at an OEM level, meaning its Stellantis parent may be able to off-set every big-engined Jeep it sells with a hybrid Alfa Romeo or something fully electric from its incoming Chinese joint-venture brand, Leapmotor.Will they sell in big enough numbers to off-set Jeep’s most popular model, the Grand Cherokee? Time will tell.Like Jeep above, Subaru’s current primarily naturally aspirated range of relatively high-emitting signature boxer engines put it on a collision course with NVES rules.Subaru might be least at risk of the options here though, because it is deep in the process of rolling out hybrids to join its lone EV model, the Solterra.The Solterra hasn't proved as popular as its rivals, but buyers are champing at the bit for the coming next-generation hybrid Crosstrek and Forester SUVs. They use Toyota's hybrid tech blended with the brand’s signature boxer engines.But wait, there’s more working against Subaru. 2027 is not far away, and by then the final stage of NVES will even be putting pressure on currently popular plugless hybrids, which the brand is only just now getting its hands on. Will Subaru be able to keep up? We’ll have to wait to see how its new model plans in 2025 shake out to get an idea, as representatives from its Inchcape importer declined to comment on the impact of NVES on its range at this time.Mahindra’s fledgling new-generation offerings in Australia are a major reset for the Indian marque, with a big increase in spec and quality proving to be a step-change, really giving it a better shot in Australia.The problem is right now, the brand is exclusively bringing in relatively high-emitting turbocharged petrol and diesel engines for its large vehicles, a recipe for emissions beyond the scope of NVES rules.Mahindra is working on a solution though, promising its incoming next-generation range of electric vehicles will feature heavily in its Australian line-up as soon as it can get its hands on them. Additionally, it may be able to off-set emissions from its larger vehicles with its recently-revealed 3X0 small SUV, which could prove to bolster its Australian hopes in more ways than one.Whether it will be enough to off-set its incoming next-generation diesel dual-cab remains to be seen.One of Australia's favourite brands has precisely zero electric vehicles on sale, despite an expansive passenger car range and an offering in almost every segment.Sure, its range of new engines for its large vehicles are impressive. Even though they’re big straight-sixes, they use innovative hybridised transmissions in an attempt to offer its buyers the best of both worlds. Combine that with a range of plug-in hybrids, and Mazda might well just buy itself some time. It will need to do something about its also relatively high-emitting 2.0-litre petrol four-cylinder engines, which feature in its range of hatchbacks and small SUVs.The brand recently announced it will introduce a range of lower emissions replacement engines from 2027. Dubbed SkyActiv-Z, the new engine family will burn leaner and theoretically reduce emissions without the need for electrification, and the brand said it will also borrow Toyota hybrid tech for some of its next-generation core vehicles.There’s little zero-emissions vehicles on the immediate horizon. The local division has denied it will need to dig into its Chinese joint-venture and introduce the EZ-6 sedan (at a price that will actually sell), but it almost seems an inevitability with NVES rapidly closing in.Ineos offers just one 4x4, and it looks like exactly the sort that will fall afoul of NVES rules. The Grenadier off-roader is heavy, four-wheel drive, and six-cylinder combustion powered.It is also on a ladder frame, which buys it a higher bar to beat, and its BMW-sourced engines are inherently Euro-6 compliant.The company’s local boss, Justin Hocevar, told CarsGuide at the launch of the Quartermaster ute variant that it was likely the brand would also lean on BMW for engines with upgraded mild hybrid (MHEV) technology in the short term to help it achieve its emissions targets.Additionally, he noted the smaller Fusilier, which will be available with both battery electric and range extender hybrid, was not cancelled, just put on pause for the time being as the brand globally responds to a retraction in EV demand.An EV pioneer turned laggard, Nissan is in trouble when it comes to emissions in Australia. Unlike Honda, which could potentially switch to an entirely hybrid-only range to buy itself some time, Nissan will need to radically overhaul its range of passenger vehicles in just a handful of years if it wants to avoid NVES wrath.Sure, it has introduced the appealing range-extender e-Power hybrid tech on its best-selling Qashqai and X-Trail, but the system isn’t efficient enough to off-set the amount of Navaras or petrol V6 engines it sells.Its trailblazing Leaf EV is now gone and the mid-size Ariya electric SUV is still nowhere to be seen, leaving future hopes in the hands of the small SUV Leaf replacement due to be revealed next year.Ram is arguably a worse position than Isuzu. Its importer, Ateco, has ditched the V8 1500 for next year and is replacing it with a twin-turbo V6, but it isn't likely to fare much better in emissions tests. As CarsGuide understands, Ateco isn’t allowed to spread its emissions across its brands in contrast to its factory-backed group rivals.This means every big Ram could be looking at a major price increase if its emissions aren’t allowed to be offset by Ateco’s LDV Chinese commercial vehicle marque, which is expected to move quite a few electric Deliver 7 vans and eTerron 9 utes in the next year.It puts the brand in quite a spot going into 2025, as much of its success has been due to the bulk of its 1500 sales sitting right in the circa-$130,000 sweet spot, which seems to attract buyers to the ‘full-size’ American pick-up space.
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Badge of honour. Here are the the Top 10 best car name badges of all time | Opinion
By James Cleary · 20 Dec 2024
What’s a car without a name? It’s an object that may function superbly well. It might even look impressively tough or beautifully sleek.
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Cheapest utes in Australia: Top 5 budget and best value utes
By Stephen Ottley · 19 Dec 2024
What is the cheapest ute in Australia?At the time of publication the cheapest ute in Australia is the Toyota HiLux Workmate 4x2. A key reason for the HiLux’s sustained success is Toyota’s decision to ensure every end of the market is covered, from the humble Workmate to the plush Rogue and dynamic GR-Sport. The Workmate 4x2 starts at just $26,475 (plus on-road costs), retaining its title as cheapest new ute Australia despite the influx of new cheaper offerings from China and India in recent years. As the legend goes, utes were originally intended to be a vehicle to take farmers to church on Sunday and the market on Monday. Therefore, they were designed to be an affordable, working class vehicle that appealed to a limited audience.Fast forward nearly 100 years and the ute has become a defining feature of Australian automotive society and culture. The ute is now no longer just going to the church and the market, it drives people to building sites, office blocks, the beach, the motocross track, the local shopping centre and just about anywhere else a modern car goes.As the ute has become ubiquitous it has evolved into many different forms and become increasingly expensive. The popular Ford Ranger Raptor starts at more than $90,000, while the new breed of locally-converted American ‘pick-ups’ can cost more than six-figures, with the Ram 3500 Laramie a whopping $177,950.But what if you’re still after an affordable ute that won’t break the bank? Well, we’ve got you covered. In this article you’ll find a list of the cheapest utes Australia has to offer at this moment in time (December 2024).While the market has shifted more upmarket in recent years, the good news for Australian buyers is there are still plenty of affordable utes available. As the Toyota HiLux Workmate proves, these aren’t from just newer brands like GWM, Mahindra and LDV. Instead, (if you don’t need 4x4) you can get into an Isuzu, Nissan, Mazda or Ford for under $40K.Beyond the usual factors you consider when buying a new ute - price, payload, towing capacity, etc - one of the key considerations when looking for a budget ute is reliability and future ownership credentials. For example, the Tata Xenon was the cheapest ute Australia offered a few years ago, starting at just $19,990. However, the brand did not last long and exited the Australian market, which leaves owners with an uncertain future.All the brands on our list below are now firmly established in the local market, so should not suffer a similar fate to Tata, but it still pays to consider the company you’re buying from and what reputation it has for reliability and ownership in the ute sector.  The HiLux was the best-selling ute (and one of the most popular new models, period) in Australia for a very long time and the Workmate has a lot to do with that.It may be powered by a humble 122kW/245Nm 2.7-litre turbo-diesel, have a single cab chassis and only be 4x2, but for buyers looking for a cheap, hard-working ute it ticks all the right boxes - it can tow up to 2500kg and has a payload of up to 1145kg. While Toyota may have a diverse HiLux range now, it has never forgotten the need to cater to the budget end of the segment, even in the face of the arrival of GWM, Mahindra and Tata with some very cheap utes in recent years. But while some have come and gone, the Workmate has remained.The D-Max is one of Australia’s favourite utes, typically finishing behind only the Ford Ranger and Toyota HiLux in the sales race. A big part of that popularity is its affordability, which is led by the entry-grade SX Single Cab. It’s powered by a 110kW/350Nm 1.9-litre four-cylinder turbo-diesel paired with a six-speed manual transmission. While it has a small engine, it has a braked towing capacity of 2800kg and a payload capacity of 1400kg (without a tray), so it can still work hard.You’ll be noticing the theme here is single cab chassis models, because the bed adds to the cost and bumps them out of the most economical ute discussion. The Navara SL is another example of this, taking a no-frills approach and only offering the important elements.That includes a 2.3-litre twin-turbo diesel good for 120kW/403Nm and paired with a six-speed manual gearbox. This is enough to give the Navara SL a 3500kg braked towing capacity, which is on par with more expensive 4x4 models, and also a payload of 1350kg.The Chinese brand has made its mark with its affordable range of Cannon utes, which begins with this cab chassis option. It has the same 120kW/400Nm 2.0-litre turbo-diesel as the rest of the range but misses out on the four-wheel drive. That gives it enough to tow up to 3000kg and the payload is rated at 1050kg.What it does have over the previous utes on this list is a back seat, with a dual cab body and it also gets the aluminium tray out the back included in the price. It also gets some other nice touches not common at this price point, such as an eight-speed automatic transmission and alloy wheels. The Indian brand has been in Australia longer than most people probably remember, first arriving back in 2007. The Pikup has been its staple since then and after the cut-price S6+ and S10 models laid the foundation, this newer S11 has arrived to carry on the legacy of affordable utes from Mahindra.While it’s the most expensive of the five on this list, it’s the only 4x4 and the only dual cab of its kind for under $40K.Powered by a 103kW/320Nm 2.2-litre turbo-diesel the Pikup S11 can tow up to 2500kg and has a 1035kg payload.
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Fastest P-plate legal cars - Six of the quickest options
By Emily Agar · 06 Dec 2024
What is the fastest P-plate legal car in Australia? There’s no hard and fast winner when it comes to what is the fastest legal p-plate car, as each state has differing rules about what is allowed.
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Is this the compact hybrid 4WD that Nissan needs in Australia? 2025 Nissan Kicks crossover SUV destined for Japan with Australia potentially in its sights as it emerges as possible rival to Hyundai Kona, MG ZS and Kia Seltos: Report
By Samuel Irvine · 05 Dec 2024
The next-generation Nissan Kicks crossover SUV is headed for Japan exclusively in hybrid guise next year, according to BestCar Japan, with the door potentially ajar for an Australian release.
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Next-generation trailblazing electric car takes shape: 2025 Nissan Leaf previewed in new renders as hatchback swells into potential BYD Atto 3, Tesla Model Y and Volkswagen ID.4 rival: Report
By Samuel Irvine · 02 Dec 2024
As we patiently await Nissan's successor to the trailblazing Leaf — the world’s first-ever mainstream electric car — Japanese publication BestCar is keeping us occupied with fresh digital renders.
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Nissan debuts its newest electric car: Car giant prepares to launch N7 electric sedan overseas, but will it come to Australia? And when can we expect the new Leaf and Ariya EVs?
By Laura Berry · 19 Nov 2024
Nissan is about to launch its new N7 electric car in China, which it hopes will attract some of the attention away from the country's local brands.Australia appears to be off the cards for the new EV, despite there being plenty of enthusiasm here for electric cars.Nissan and joint-venture partner Dongfeng revealed the sleek-looking N7 at the Guangzhou motor show over the weekend, showcasing the first model to be built on the JV’s new modular architecture. The N7 is a large sedan 4930mm long, 1896mm wide and 1487mm tall, with smooth lines and a fastback profile. The N7 will have interactive exterior LED lights. At the front are 710 LEDs, while at the rear are 882 OLED units.Inside, the cabin will feature a next-gen media system, which promises to offer outstanding connectivity thanks to the higher-powered Qualcomm Snapdragon 8295P processor.The N7 will also have an advanced form of autonomous technology with Nissan teaming up with self-driving company Momenta.Nissan hasn’t revealed any further details regarding motor outputs, battery capacity or driving ranges. We expect to know more soon due to Chinese government regulations which require all car manufacturers to submit specifications that are published ahead of the vehicle going on sale.In Australia the only electric car sold by Nissan is the Leaf, but this second-generation model arrived in 2017 and production ceased in March this year, leaving Australia to rely on the dwindling stock remaining in the country.We’ve seen spy images of the third-generation Leaf, but the new EV won’t enter production until 2025 and even then it might not be available to buy in Australia for up to two years.Australia is also still waiting on Nissan’s all electric Ariya SUV, which according to the Japanese brand was due here this year but was held up from going on sale due to it not meeting Australian Design Rules (ADRs) for a child seat anchor point.Nissan told us the ADR issue has now been resolved and the Ariya will be available to buy in the second half of 2025. China is far and away the biggest market for electric cars and business for EVs is booming with year to date sales for electrified vehicles up by 35 per cent.Australia is also experiencing its own EV boom with 69,962 fully electric vehicles sold this year, compared to 65,743 this time last year. That’s a 6.5 per cent increase.The sales are fuelled by the arrival of affordable electric Chinese cars from BYD and MG. BYD’s year-to-date result has increased by 74.4 per cent with the brands Seal proving particularly popular with 5308 sold so far in first full year on sale in Australia.
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