Stellantis has signed an agreement with China’s Dongfeng Group to manufacture Peugeot and Jeep vehicles in China through their joint venture, Dongfeng Peugeot Citroën Automobile (DPCA).
Production under the agreement is due to commence in 2027, with the overall project involving investment exceeding 8bn yuan ($1.17bn).
Stellantis is expected to contribute around €130m.
As part of the arrangement, DPCA will build two new Peugeot-branded new energy vehicles at its Wuhan facility for both the Chinese market and export destinations.
The venture will also manufacture two Jeep-branded off-road new energy vehicles intended for global markets from 2027.
Stellantis CEO Antonio Filosa said: “With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to further leverage their strengths and introduce all-new vehicles with cutting-edge EV technologies from brands that customers worldwide trust and love.”
The press statement said implementation of the project remains subject to regulatory clearances and the signing of final implementation agreements covering operational and economic terms.
Alongside the production plans, Stellantis and Dongfeng also entered a non-binding strategic memorandum of understanding to broaden collaboration across manufacturing, research and development, and industry expertise.
The initiative is backed by automotive industry policies in Hubei province and Wuhan municipality and supports Peugeot’s international expansion strategy, the statement added.
Stellantis said the deal builds on its 34-year partnership with Dongfeng and strengthens the role of the DPCA joint venture in serving both China’s domestic market and export demand.
Dongfeng group chairman Qing YANG added: “Through the signing of this strategic cooperation, by integrating Hubei’s industrial strengths, Stellantis’ global layout advantages and Dongfeng’s intelligent electric vehicle technologies, a new path featuring complementary strengths and win-win outcomes for all parties has been forged.”
The development comes as Stellantis continues discussions with several Chinese carmakers.
Earlier this week, BYD was reported to be in talks with Stellantis and other European manufacturers regarding the use of underutilised production capacity in Europe as the Chinese EV maker expands in the region.
Earlier this month, Stellantis and Leapmotor said they planned to deepen their partnership.
The companies already operate the Leapmotor International joint venture, which markets vehicles in Europe, while Stellantis and FAW both hold stakes in the Chinese carmaker.
“Stellantis, Dongfeng agree €1bn China EV production venture” was originally created and published by Just Auto, a GlobalData owned brand.
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