The plan centres on the long-running DPCA joint venture, which is expected to begin making two Peugeot-branded new energy vehicles and two Jeep off-road new energy vehicles from 2027, subject to approvals.

The Peugeot range is intended for Chinese buyers as well as export markets, while the Jeep models are aimed at international sales, marking a renewed local production effort for the brand after its earlier China venture ended in 2022.

The project carries a combined investment of more than R18.6 billion (8 billion yuan), equivalent to roughly R20.6 billion (€1 billion) or about R22.0 billion ($1.18 billion). Stellantis is expected to contribute around R2.7 billion (€130 million), with additional support linked to industrial policies in Hubei province and Wuhan.

The move is not just about adding new vehicles. It also reflects a wider shift in how Stellantis is approaching electrification and manufacturing. The group has already expanded its partnership with Leapmotor in Spain, where the two companies plan joint electric vehicle production and are exploring deeper industrial cooperation. That underlines a broader strategy of using Chinese partnerships to gain faster access to EV technology, lower costs and improve factory utilisation.

For Dongfeng, the arrangement strengthens its position as a technology and manufacturing partner with global reach. For Stellantis, it is another attempt to turn China from a weak spot into a launchpad for international growth. If the project succeeds, Wuhan could become a key export base for some of its next-generation electric models.