Jeep® Cancels Next-Gen Compass for India Amid High Costs

Jeep® has decided not to bring the next-generation Compass (J4U) to India. The new compact SUV, which is scheduled for a 2026 model year release, has been deemed commercially unviable due to the high costs associated with the new STLA Medium architecture.

While Stellantis has been developing the J4U for some time, the new STLA Medium architecture, which will support a variety of vehicle types and advanced features, has significantly driven up costs. The new architecture supports both electrical and internal combustion engines (ICEs) and includes advanced connectivity and driver-assistance features. Unfortunately, these benefits come at a steep price, which has proven too high for the Indian market.

The investment required for the J4U project was estimated to be between $400-500 million (approximately Rs 3,344 crore – 4,180 crore). Stellantis had considered developing the new Compass on this platform and producing Peugeot SUVs for export to Malaysia from India. However, declining sales of the Compass in India and limited potential for Peugeot in Malaysia meant that the necessary sales volumes could not be assured.

Jeep will continue producing the current generation Compass in India beyond 2026, with plans for periodic cosmetic updates to keep the model fresh. Initially launched in July 2017 and facelifted in 2021, the Compass was once Jeep India’s top-selling model, with peak monthly sales between 1,500 and 2,000 units in 2017 to 2018. Recent sales, however, have dropped to around 270 units per month.

While there were discussions about reintroducing a gasoline engine option for the Compass, this is unlikely to happen. The low sales volumes do not justify the investment and certification costs for a new gasoline engine. As a result, the current Compass will continue as a diesel-only model.

Despite the cancellation of the next-gen Compass, Stellantis remains committed to the Indian market. The company highlights that India is the only country outside the United States where four Jeep models are locally produced and assembled. A Stellantis India spokesperson emphasized that there are no changes to Jeep’s production plans in India at this time.

While the next-generation Jeep Compass will not be coming to India due to high development costs and market challenges, the current model will continue to receive updates to maintain its presence in the market.

Source: Autocar India