Jeep Australia expected to source vehicles from China, India

Jeep says it’s “fully committed” to the Australian market, and the US off-road brand is now expected to introduce models developed by Chinese and Indian partners to flesh out its lineup.

Earlier this month, Jeep globally confirmed it would introduce two vehicles developed with Dongfeng, which parent company Stellantis has had a long-standing relationship with.

These two “new energy vehicles” – Chinese terminology that covers plug-in hybrids (PHEVs), electric vehicles (EVs) and extended-range electric vehicles (EREVs) – are set to enter production in China in 2027 and will be exported to various global markets.

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Stellantis also has a 50:50 joint venture with Tata called Fiat India Automobiles Private Limited (FIAPL), which produces Jeeps.

Now, Jeep Australia has given a strong indication it plans to introduce Chinese-built models here, and also return to sourcing vehicles from India.

“We’re excited about the opportunities presented through Stellantis’ collaboration with Dongfeng and Tata, particularly for markets in APAC [Asia-Pacific and China],” said a spokesperson for Jeep Australia.

“These developments are an important part of Stellantis’ global product strategy, and we look forward to sharing more details for Australia in the future."

“The Jeep brand remains fully committed to the Australian market and Stellantis continues to invest heavily in its global product portfolio," the spokesperson added.

Jeep Australia sourced the outgoing Compass from India until 2024, when it moved to an Italian-built version. While this brought a choice of mild-hybrid or PHEV powertrains, it also saw the base price rise by close to $5000.

Other vehicles produced by Jeep in India comprise the Meridian, a boxier, three-row SUV based on the Compass, plus the familiar Wrangler and Grand Cherokee.

Jeep announced in January that India would be at the core of its Asia-Pacific strategy, with design, development and manufacturing of vehicles to take place there.

In addition to continuing to export to Asia-Pacific markets, Jeep confirmed Indian-built models would also head to African and North American markets.

Jeep Australia currently sources vehicles from Poland (the Avenger), Italy (Compass), and the US (Gladiator and Wrangler).

It’s unclear whether the new Chinese-built Jeeps will use Stellantis or Dongfeng architectures. Dongfeng is also producing two new vehicles for another Stellantis brand, Peugeot, one of which will be a new large shooting brake.

Combined, the new Jeep and Peugeot vehicles will be developed at a cost of over ¥8 billion (A$1.65bn), of which Stellantis is contributing €130 million (A$211 million).

Should Jeep introduce to Australia vehicles developed and built in China, it would be just the latest in a growing number of non-Chinese brands to do so.

Hyundai has the Elexio developed with joint-venture partner BAIC, Mazda is launching the 6e and CX-6e developed with Changan, Ford is expected to introduce the Bronco New Energy developed with JMC, and Nissan is expected to launch the Frontier Pro ute and potentially other vehicles developed with Dongfeng.

The Dongfeng-Jeep tie-up is the latest Chinese joint venture involving the iconic American off-roader brand.

Previously, Jeep's then-parent company Fiat Chrysler Automobiles had a joint venture with GAC. Chinese Jeep production under this tie-up commenced in 2016.

This joint venture produced the Renegade, Compass and Cherokee, plus a bespoke Chinese model called the Grand Commander which was a Cherokee-based three-row SUV.

However, Jeep announced in 2021 this joint venture was being terminated due to financial losses, and the brand switched exclusively to imports in China.

Moving forward, it appears Jeep Australia will lean less heavily on the brand’s American operations for product.

The latest Cherokee, as well as the Grand Wagoneer flagship, are only produced in left-hand drive.

While Jeep’s previous global CEO Christian Meunier had confirmed back in 2022 that the electric Wagoneer S and Recon were coming to Australia, these have still yet to appear.

When asked about the Recon’s chances for our market now, particularly given confirmation of a combustion-powered version, the Jeep Australia spokesperson was noncommittal.

“We continue to assess future product opportunities in line with local market demand and our broader portfolio strategy and will share more details in the future,” they said.

Jeep Australia discontinued the Grand Cherokee last year, though it called it a ‘pause’. However, right-hand drive production of the current WL series has ended, with the facelifted model – now using a turbocharged 2.0-litre four-cylinder petrol engine – produced only in left-hand drive.

“While the Jeep Grand Cherokee continues to be sold in many countries around the world, the current model is not available in Australia,” the spokesperson said.

“This decision allows us to focus our efforts on placing the right products in the right segments that can have the greatest relevance for our customers.”

The new third-generation Compass is still expected in 2026, though the only production location at present is Italy. The North American market doesn’t yet receive the new Compass, the first generation to offer pure electric power.

Jeep sales have been trending downwards in Australia since reaching a height of 30,408 units in 2014.

They reached a low of 5519 in 2019, before rebounding somewhat and then slumping to 4634 units in 2023 and continuing to slide.

Last year, Jeep delivered just 1682 vehicles. Its best seller was the Grand Cherokee, which it announced it was discontinuing in March.

Its latest new model is the Avenger, which has proved sales-proof: just 31 examples of the pint-size electric SUV have reached buyers so far this year, and it’s received significant discounts.

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