Jeep’s Expansion in the Australian Market
Jeep has reaffirmed its commitment to the Australian market, signaling a strategic shift towards incorporating models developed by Chinese and Indian partners. This move is part of a broader initiative by Stellantis, Jeep’s parent company, to expand its global product portfolio.
Global Collaboration with Chinese and Indian Partners
Stellantis has been working closely with both Chinese and Indian partners for an extended period. The brand has confirmed that two new energy vehicles (NEVs) will be introduced in China in 2027. These NEVs encompass plug-in hybrids (PHEVs), electric vehicles (EVs), and extended-range electric vehicles (EREVs). Once in production, these models are expected to be exported to various global markets.
In addition to this, Stellantis has a 50:50 joint venture with Tata called Fiat India Automobiles Private Limited (FIAPL), which produces Jeeps. This collaboration has been instrumental in supplying vehicles to different regions, including Australia.
Jeep Australia has indicated that it plans to introduce Chinese-built models and potentially return to sourcing vehicles from India. A spokesperson for Jeep Australia stated:
“We’re excited about the opportunities presented through Stellantis’ collaboration with Dongfeng and Tata, particularly for markets in APAC [Asia-Pacific and China]. 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.
Sourcing Vehicles from India
Previously, Jeep Australia sourced the Compass from India until 2024, when it shifted to an Italian-built version. While this change offered a choice of mild-hybrid or PHEV powertrains, it also resulted in a price increase of nearly $5,000.
Other vehicles produced by Jeep in India include the Meridian, a boxier, three-row SUV based on the Compass, as well as the familiar Wrangler and Grand Cherokee.
In January, Jeep announced that India would be at the core of its Asia-Pacific strategy, with design, development, and manufacturing of vehicles taking place there. In addition to exporting to Asia-Pacific markets, Jeep confirmed that Indian-built models would also be sent to African and North American markets.
Currently, Jeep Australia sources vehicles from Poland (the Avenger), Italy (Compass), and the US (Gladiator and Wrangler).
It remains 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), with Stellantis contributing €130 million (A$211 million).
Should Jeep introduce vehicles developed and built in China to Australia, it would follow a growing trend among non-Chinese brands. 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 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 that 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 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 5,519 in 2019, before rebounding somewhat and then slumping to 4,634 units in 2023 and continuing to slide.
Last year, Jeep delivered just 1,682 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.
