Next-Gen Jeep Compass Cancelled: Market Struggles To Be Blamed

Updated: Tuesday, June 18, 2024, 12:00 [IST]

The next-gen Jeep Compass, set to surpass the current model, has been scrapped before its launch. Last month, Jeep was in the news with its 2026 Compass model in advanced stages of development. However, a recent report indicates the project has been cancelled.

Reasons Behind The Cancellation

Stellantis, the international automotive conglomerate, has had challenges in the Indian market. Stellantis manufactures Jeep and Citroen vehicles locally, but both brands struggle to gain significant market share. According to reports, Stellantis has halted the next-gen Compass project, internally codenamed J4U.

This vehicle was intended to launch in 2026 or 2027, debuting a new platform and spawning the next-gen Meridian, a 7-seater version of the Compass. The new STLA-M platform had been under development for the past year. However, it failed to meet commercial viability for the Indian market.

Investment & Development Costs

The project would have required an investment of nearly USD 500 million (approximately Rs 4,200 crore). The STLA-M platform was also intended to support a few Peugeot-branded vehicles for export to Malaysia from India. However, development costs overshot targets by 1.7 times, making it unviable.

Declining sales of the Jeep Compass and limited potential for the projected vehicles on the STLA-M platform led Stellantis to discontinue the project. The STLA-M platform was designed to accommodate multiple body styles, advanced connectivity features, and various powertrains, including electric offerings.

Future Plans For Jeep

Despite cancelling the next-gen Compass, the current model will continue to be manufactured in India, along with its 7-seater counterpart, the Meridian, beyond 2026 or 2027. Jeep plans to keep the product line fresh by periodically launching facelifts and special editions to drive traffic to their dealerships.

Upcoming Facelifts & Features

Jeep is currently testing a facelift for the Meridian, with improved features like an ADAS suite from Bosch. These revisions and features are expected to be included in the smaller Compass as well. Given the sales trends, Jeep is less likely to develop a petrol engine, though it is rumoured to be in testing.

DriveSpark Thinks

Price remains a significant issue for the Jeep Compass. Recently, Jeep reduced the base-spec Compass price by Rs 1.7 lakh (ex-showroom). There is a hope that this reduction will be consistent across variants and that the facelift model will not see a price hike.

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