Multinational automaker Stellantis plans to launch a low-cost Jeep electric vehicle model at the $25,000 price point in the US market “very soon,” CNBC reported.
Affordable $25k Jeep EV coming soon, says Stellantis CEO
During a Bernstein investor conference on Wednesday, Stellantis Chief Executive Carlos Tavares confirmed that the new $25,000 Jeep EV will hit the market sooner than expected.
“In the same way we brought the 20,000 Euro Citroen e-C3, you will have a $25,000 Jeep very soon. We are using the same expertise because we are a global company and this is totally fluid across the engineering world of Stellantis.”
Stellantis Chief Executive Carlos Tavares
The move is part of the company’s efforts to attract mainstream buyers amid the slower-than-expected EV uptake and the surge of low-cost Chinese offerings.
Jeep to compete in the growing market for low-cost EVs
Jeep’s inaugural electric vehicle model for the US market is on track to break cover this week. Nonetheless, the rugged SUV brand is already developing a more affordable offering to compete in the expanding affordable EV market.
The Jeep Avenger EV is already available in Europe for about €35,000 (roughly $37,800). However, the first model to hit the US market will be the Wagoneer S for a premium price. After that, a Wrangler-inspired electric Recon model will follow suit.
According to the Stellantis boss, a truly affordable all-electric model must cost €20,000 in the EU and $25,000 in the US.
“If you ask me what is an affordable BEV, I would say 20,000 euros in Europe and $25,000 in the US So our job is to bring the safe, clean and affordable BEV to the US, $25,000. We’ll do it.”
Stellantis Chief Executive Carlos Tavares
Cox Automotive data showed that the Nissan LEAF and Ariya were the top two cheapest electric vehicle models in the US in the first quarter of 2024. Their average selling prices were $27,956 and $35,556, respectively.
Therefore, the planned Jeep EV will immediately become the country’s cheapest model when it hits the market with a $25,000 price tag.
Moving forward
Stellantis CEO Carlos Tavares also announced on Wednesday that the company aims to reach cost parity with gas-powered cars within the next “three years, max.”
Stellantis expects this strategy to help it remain competitive in the electric vehicle market amid the intensifying dominance of cheap China-made EVs.
“It’s a very challenging period, very chaotic, very Darwinian. We are in the storm, and this storm is going to last a few years.”
Stellantis Chief Executive Carlos Tavares
Notably, the Stellantis boss’ remarks seem influenced by the growing geopolitical tensions in Chinese EV imports in the US, Europe, and other regions. The industry worries about the Chinese players’ potential to overthrow homegrown automakers and their locally-produced EVs.
The US government recently announced a quadrupling of tariffs against China-made EVs from 25% to 100% to curb their surge in the domestic market. The EU is also currently conducting an anti-subsidy probe, which will be the basis of potential tariffs on Chinese imports.
