Stellantis has overhauled its strategy for the Indian market by canceling the next-generation Jeep Compass project. Originally slated for a 2026 release under the codename J4U, the project ceased after more than a year of development due to commercial viability concerns.
The company now plans to leverage the cost-effective Citroen Smart Car or Common Modular Platform (CMP) instead of the pricier STLA Small platform. This shift was unveiled during the brand’s investor day presentation, where the new model debuted as the Jeep Renegade. This approach aligns with Stellantis’ previous strategy for the fourth-generation Citroen C3, which transitioned to the CMP platform in late 2023.
Stellantis CEO Carlos Tavares highlighted the CMP platform’s global sourcing capabilities and cost-competitive solutions in a recent discussion with Autocar UK. This platform shift is expected to price the new Jeep model between Rs 15 lakh and Rs 20 lakh in India, significantly lower than the current Compass’s Rs 20 lakh to 30 lakh range. The new Jeep Renegade aims to become the mainstream Jeep model in India within the next 24-30 months.
The primary driver behind canceling the next-generation Compass is financial. Developing the J4U Compass on the new STLA-M platform would have required an additional investment of $400-500 million (Rs 3,344 crore to Rs 4,180 crore). The STLA-M platform, designed to support various vehicle types and incorporate advanced connectivity features, infotainment systems, and both electric and ICE options, proved too costly.
A Stellantis source noted that the flexibility and features of the STLA-M platform have made it prohibitively expensive. Cost overruns, estimated at 1.7 times the initial targets, rendered the project unfeasible, particularly given CEO Carlos Tavares’ stringent cost-control measures.
Impact and Future Plans
The Stellantis India spokesperson reassured that no immediate changes to the company’s Jeep roadmap for India exist. Stellantis remains committed to investing in the Indian market, where it is the only country outside the United States to locally produce and assemble four Jeep nameplates.
The decision also affects Stellantis’ plans for similar-sized Peugeot SUVs intended for the Malaysian market, which were to be based on the same platform.
Despite the cancellation, the current Jeep Compass will continue to be manufactured in India beyond 2026, albeit with occasional cosmetic upgrades to extend its lifecycle. The Compass, once a strong competitor to the Mahindra XUV 500, has seen a steady decline in sales from a peak of 1,500-2,000 units per month in 2017-2018 to just 270 units per month recently. Meanwhile, newer models like the Mahindra XUV 700 have gained significant market share, averaging 8,000-10,000 units per month in the last financial year.
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