Next gen Jeep Compass not viable commercially for the Indian market
Stellantis has decided to cancel the launch of the next generation Jeep Compass in India. This decision comes after an evaluation of the commercial viability of the new model, which was set to debut in 2026 under the project codename J4U.
The primary reason for shelving the next gen Jeep Compass is the high cost associated with the STLA-M platform. This platform, designed to support various body styles and powertrains, including electric and internal combustion engine options, proved too expensive for the Indian market. Development costs for the platform exceeded initial targets by 1.7 times, necessitating an additional investment of $400-500 million (approximately Rs. 3344 crores – 4180 crores).
Stellantis explored the possibility of using the STLA-M platform not only for the Compass but also for producing Peugeot SUVs for the Malaysian market from India. However, declining sales of the Compass in India and limited market potential for Peugeot SUVs in Malaysia meant the necessary production volumes could not be guaranteed.
In light of this decision, Stellantis will continue to produce and update the current generation Compass in India. The model, which was initially launched in July 2017 and received a facelift in 2021, will undergo occasional cosmetic updates to extend its lifecycle beyond 2026.
The Jeep Compass once enjoyed peak sales of 1500-2000 units per month in 2017-2018 but has recently seen a decline, with monthly sales averaging around 270 units over the past six months. While there were plans to reintroduce a petrol engine option for the Compass, after it was discontinued in May 2023, these plans are likely to be dropped due to low volumes and the associated costs of new engine homologation.
Despite the cancellation of the next gen Compass, Stellantis emphasises its commitment to the Indian market. A spokesperson stated, “Stellantis remains committed to the Indian market as it is the only country to locally produce and assemble four Jeep nameplates outside of the United States. There are no changes to the production of Jeep vehicles in India and there are no announcements to be made now.”
The current Compass will continue to be a diesel-only offering, with Stellantis focusing on maintaining its relevance in the Indian market through updates and facelifts.
