Stellantis and Dongfeng have unveiled a fresh manufacturing push in China, agreeing to expand output of Peugeot and Jeep vehicles through their long-running DPCA joint venture in Wuhan. The project is aimed at both Chinese buyers and export markets, signalling a broader effort by Stellantis to rebuild its position in the world’s biggest car market while leaning more heavily on Chinese technology and partnerships.
The combined investment is put at more than R18.6 billion (8 billion yuan), or roughly R20.6 billion (about 1 billion euros) and about R22.3 billion (US$1.2 billion). Stellantis is expected to provide around R2.7 billion (130 million euros). Local industrial support from Hubei province and Wuhan is expected to help drive the programme forward.
According to company statements, DPCA is expected to build two all new Peugeot new energy vehicles and two Jeep branded off road new energy vehicles from 2027, pending approvals. The Peugeot models will serve China and export markets, while the Jeep vehicles are being positioned for global sale, marking a notable return to local Jeep production after Stellantis ended its previous China joint venture with GAC in 2022.
The deal also fits a wider pattern. Recent reports show Stellantis has been expanding its relationship with Leapmotor in Europe, where the two groups plan joint electric vehicle production in Spain. That suggests the carmaker sees alliances with Chinese manufacturers not as a temporary fix, but as a central part of its future model for product development, lower costs and faster access to EV technology.
For Stellantis, the Wuhan plan is more than a production agreement. It is a test of whether established Western brands can regain momentum in China by combining global badges with local engineering and policy support. For Dongfeng, it offers a chance to turn existing capacity and EV expertise into stronger international reach.
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
