Jeep, a brand under Stellantis, has set an ambitious target to increase U.S. sales of its plug-in hybrid electric vehicles (PHEVs) by up to 50% this year. This decision comes as the automaker sees PHEVs as a crucial bridge between its traditional gas-powered SUVs and the upcoming all-electric models. Amidst a slower-than-expected pace of electric vehicle (EV) sales, Jeep is doubling down on the potential of PHEVs to accelerate consumer adoption of electrified vehicles.
With expectations to sell between 160,000 to 170,000 PHEVs in the U.S. this year, Jeep’s target would surpass its total 2023 sales of PHEVs. This move also outperforms the industry’s projected 27.5% growth for the PHEV segment, contrasting with a 17% growth forecast for EVs. In 2021, Jeep sold a total of 113,113 PHEVs, including popular models like the Wrangler and Grand Cherokee, making them a leader in PHEV sales in the U.S.
Jeep’s strategy focuses on diversifying its product portfolio to meet changing emissions and fuel economy standards. The brand is set to launch its first all-electric SUVs, starting with the Wagoneer S, and plans to introduce more electric models like the Recon and a replacement for the Cherokee midsize SUV. Additionally, Jeep will add plug-in “range-extender” models to its gas-powered Wagoneer and Grand Wagoneer SUVs by 2025 to provide more options for customers looking for electrified vehicles.
Both hybrids and PHEVs combine traditional internal combustion engines with EV technologies. Hybrid vehicles like the Toyota Prius use electrified components to improve fuel efficiency alongside the engine. In contrast, PHEVs come with larger batteries that allow for extended all-electric driving ranges before the engine kicks in. This flexibility appeals to consumers looking to transition gradually into electric vehicles without compromising on range.
Stellantis is also exploring the concept of “range-extender electric vehicle” models (REEVs) to provide a unique driving experience. REEVs can operate as zero-emission EVs until the battery is depleted, at which point an onboard generator powered by a combustion engine takes over. The first REEV vehicle from Stellantis, the Ram Ramcharger full-size pickup truck, is expected to hit the market later this year. This innovative approach aims to offer a balance between zero-emission driving and the convenience of an onboard generator for longer trips.
Jeep’s dedication to expanding its PHEV lineup and exploring new electrified technologies reflects the shift towards a more sustainable automotive industry. By offering a range of options from traditional hybrids to all-electric models, Jeep is positioning itself to meet the evolving needs of customers and regulatory standards. As consumer interest in electrified vehicles continues to grow, the success of Jeep’s PHEV and upcoming EV models will be a key indicator of the brand’s ability to adapt to changing market trends.