Stellantis and Dongfeng Group signed a strategic cooperation agreement on May 15 that will expand the production of Peugeot and Jeep new-energy vehicles in China starting in 2027, according to CLS.
Under the agreement, the Dongfeng Peugeot Citroën Automobile joint venture is expected to produce two new Peugeot-branded NEVs and two Jeep-branded off-road NEVs at its Wuhan plant. The Jeep models are planned for global export markets, while the Peugeot vehicles are intended for both China and overseas sales.
The project carries a combined investment of over 8 billion yuan (1.18 billion USD), with Stellantis expected to contribute approximately 130 million euros.
Jeep returns to local production
The announcement marks Jeep’s return to localised production in China after the termination of the GAC-Stellantis joint venture in 2022.
The new agreement also follows earlier reports that Stellantis planned to develop a new Jeep SUV using Dongfeng technology. The latest announcement did not disclose platform details, battery suppliers, or powertrain specifications for the upcoming models.
Stellantis said the new Peugeot vehicles would adopt the design language shown by Peugeot concept cars displayed at the 2026 Beijing Auto Show.
Wider China strategy
The cooperation comes as several foreign automakers deepen partnerships with Chinese manufacturers to accelerate NEV development and reduce development costs.
In April, Chery and JLR unveiled the Freelander 8 SUV with Huawei ADS 5 driver assistance and CATL 6C charging technology, highlighting the growing use of Chinese EV systems in joint-venture projects.
Stellantis has also expanded its cooperation with Leapmotor since acquiring a 21% stake in the Chinese EV maker in 2023. The companies recently announced plans to deepen manufacturing cooperation in Europe in addition to distribution activities.
Leapmotor’s sales in China till April 2026. Credit: China EV DataTracker.
Sales context
Leapmotor’s domestic sales reached 57,161 units in April 2026, according to China EV DataTracker data. The figure rose 101.9% year on year, giving the brand a 4.1% market share in China that month.
Separately, Stellantis and Dongfeng also signed a non-binding memorandum of understanding to expand cooperation in research, development, and manufacturing.
Antonio Filosa, Stellantis CEO, said the project would combine “cutting-edge EV technologies” with the group’s global brands, while Dongfeng chairman Yang Qing said the agreement would support the transformation of DPCA operations in Wuhan.
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