Before the Datsun brand existed, a vehicle named the DAT car was built in 1914 by the Kaishinsha Motorcar Works in Tokyo. The name was an acronym of the partners' initials: Kenjiro Den, Rokuro Aoyama, and Meitaro Takeuchi. The firm renamed itself DAT Motorcar Co. after several corporate reorganizations and merges with the Osaka-based Jitsuyo Jidosha Co. in 1926.
In 1930, the Japanese government created a ministerial ordinance permitting cars with engines up to 500 cc to be driven without a license. DAT Automobile Manufacturing developed small cars for this new segment, calling them Datson — meaning "Son of DAT." The name was changed to Datsun two years later in 1933, in part because "son" also means "loss" in Japanese, and to honour the sun depicted in the national flag. The first prototype Datson was completed in summer 1931; approximately ten production vehicles were sold that year as the Type 10, followed by around 150 examples of the Type 11 in 1932.
By 1935, Datsun had established a proper production line following the example of Ford, producing a vehicle that closely resembled the Austin 7. Six early Datsuns were exported to New Zealand in 1936. In 1937, Datsun's biggest pre-war year, 8,593 vehicles were built. When Japan went to war with China in 1937, passenger car production was restricted and Datsun's Yokohama plant shifted to building trucks for the Imperial Japanese Army. After the Pacific War ended, Datsun produced trucks for Occupation forces until passenger car production resumed in 1947.
Nissan chose the Datsun name for export, partly to distance it from the parent company's substantial involvement in Japanese wartime military manufacturing. The rationale also reflected the internal advocacy of Yutaka Katayama, who desired to build and sell passenger cars, and who found in the Datsun name a brand untainted by military association. Katayama's prominence was cemented by Datsun's victory in the 1958 Australian Mobilgas Rally, which vaulted him to national recognition in a Japan focused on regaining international standing.
Datsun entered the American market in 1958 with sales in California. By 1959 the company had dealers across the United States, selling the 310, known domestically as the Bluebird. In 1966, Datsun won the East African Safari Rally outright and merged with Prince Motors, adding the Skyline model range and a test track at Murayama. By 1964, Bluebird production had reached 10,000 cars per month, with annual exports touching 100,000 units.
In 1968, Datsun introduced the 240Z, which combined an engine derived from the Bluebird with Bluebird suspension components. It rapidly became the world's best-selling sports car, proving that affordable, competitive sports cars could be produced and sold profitably. The 240Z subsequently scored two outright wins in the East African Safari Rally. The Z-car lineage has continued under the Nissan name and remained in North American production as of 2025.
Nissan began exporting Datsun-badged cars to the United Kingdom in 1968. Datsun proved particularly successful in Britain during the 1970s: sales surged from just over 6,000 units in 1971 to more than 30,000 the following year, aided by competitive pricing and consistent build quality at a time when the British motor industry was beset by strikes. During the 1970s and early 1980s, Nissan frequently held the largest market share in Britain of any foreign manufacturer.
The decision to replace the Datsun name with Nissan globally was announced in autumn 1981, driven by a desire for a unified worldwide identity and to facilitate stock and bond marketing in the United States. The transition lasted from 1982 to 1984 in most markets, although some vehicles wore both badges until 1986. The name change cost Nissan an estimated $500 million, including $30 million to re-sign 1,100 dealerships and around $200 million for advertising campaigns.
Beyond the East African Safari Rally victories, Datsun's motorsport history is intertwined with the ambitions of Yutaka Katayama, who served as Vice President of the Nissan North American subsidiary from 1960 to 1965 and then as President of Nissan Motor Company U.S.A. from 1965 to 1975. The 1958 Australian Mobilgas victories were a turning point that gave Katayama the standing to pursue the North American passenger car market under the Datsun banner, and the brand's rally success in Africa validated the 240Z's engineering credentials as a competitive platform.