Jeep’s Australian sales have taken a significant tumble, a stark contrast to its global reputation as a leading SUV manufacturer. This downturn is attributed to a confluence of factors, including escalating prices for core models like the Wrangler, a perceived lack of vehicles tailored to the Australian market, and the lingering shadow of past over-expansion and associated customer service issues, particularly concerning the previous-generation WK Grand Cherokee.
After peaking at an impressive 30,408 sales in 2014, Jeep’s Australian fortunes have largely trended downwards, with only minor upticks in 2020 and 2021 offering temporary respite. The brand’s worst year on record, at least since VFACTS data began in 1997, was 2025, with a mere 1682 units sold.
Adding to these concerns is the steady contraction of Jeep’s Australian dealer network. From 65 dealerships nationwide in 2021, this number has dwindled to just 44 by early 2025. The only confirmed new model addition for Jeep this year is the third-generation Compass, though specific launch timing remains unconfirmed. This challenging situation has inevitably fuelled speculation about Jeep’s potential withdrawal from the Australian market.
While the brand’s current predicament Down Under is undeniable, it’s worth noting that other Stellantis-owned marques distributed by the same company – Abarth, Alfa Romeo, and Fiat – have historically operated as low-volume players. This raises the question: is Jeep shifting from a widely available, full-line brand to a more niche, boutique offering? Conceding defeat in the SUV-loving Australian market for one of the world’s most recognisable SUV brands would undoubtedly be a blow to Stellantis.
Despite its current challenges, Jeep possesses a global portfolio with products that could potentially revitalise its Australian sales. However, the focus here isn’t on its electric offerings.
Potential Game-Changers for Jeep Australia
While the electric Wagoneer S, with its anticipated price tag around $100,000 in Australia, boasts handsome styling and strong performance, it’s unlikely to be the saviour. Similarly, the electric Recon, with its near-identical US pricing and impressive off-road credentials including removable doors, is also not expected to drive significant sales volume.
Here are five vehicles that could significantly improve Jeep’s fortunes in Australia:
1. Avenger Petrol and Mild-Hybrid Variants
Currently, Jeep Australia’s most affordable offering is the electric Avenger Longitude, starting at $49,990 before on-road costs. While it has seen drive-away pricing around $40,000 for several months, this is a far cry from the sub-$40k Compasses available as recently as 2022 and sub-$30k Renegades from the mid-2010s. The Avenger has performed well in Europe but has been a slow seller in Australia, with minimal sales figures in recent years.
The current electric Avenger competes in a segment saturated with more affordable and better-equipped Chinese rivals. A shift to a petrol powertrain, coupled with a more competitive price point starting with a ‘3’, could dramatically alter its prospects.
In European markets, the Avenger is available with a turbocharged 1.2-litre three-cylinder engine, paired with either a six-speed manual or a six-speed e-dual-clutch automatic transmission featuring a 48V mild-hybrid system. A 4xe mild-hybrid version also exists, offering all-wheel drive. While its 107kW system output isn’t overwhelming, the Avenger’s compact size (just 4 metres long) and relatively light weight (1475kg for the AWD mild-hybrid) make it a practical option.
Although the Avenger e-Hybrid would be manufactured in Poland, incurring a five per cent import duty, it could provide Jeep with a much-needed affordable entry-level model. This is crucial given that the brand’s “premium” positioning isn’t resonating with Australian buyers. Importantly, these extended Avenger variants are available in right-hand drive, and Jeep Australia has previously expressed interest in exploring these options.
2. Wrangler 392
The off-road segment, once a strong hold for Jeep, is now facing increasing competition from value-oriented brands. However, these rivals often lack one key ingredient: a V8 engine.
The Wrangler 392, currently only available in left-hand drive, presents a compelling proposition with its naturally aspirated 6.4-litre petrol V8 engine, delivering a formidable 350kW and 637Nm of torque. Mated to an eight-speed automatic transmission and four-wheel drive, it boasts a claimed 0-96km/h time of just 4.5 seconds.
While this might be considered excessive power for a Wrangler, it would undoubtedly serve as a unique halo model for Jeep, marking its first V8-powered vehicle in Australia since the WK2 Grand Cherokee. The primary hurdle remains its left-hand drive configuration, excluding it from the Australian market, much like previous intriguing Wrangler powertrains.
3. Cherokee
Astonishingly, Jeep, a brand synonymous with SUVs, lacks a contender in Australia’s largest volume SUV segment. The previous KL Cherokee was discontinued in Australia in 2022 and globally in 2023.
Jeep has re-entered the mid-size SUV segment in the US for 2026 with the new KM-series Cherokee, which notably features a hybrid powertrain. Given Australia’s strong demand for mid-size SUVs and hybrid technology, the new Cherokee seemed like a natural fit. Unfortunately, Jeep has confirmed it will only be available in left-hand drive.
Built on the same STLA Large platform as the Wagoneer S and Recon, the Cherokee is powered by a turbocharged 1.6-litre four-cylinder hybrid powertrain, producing 154kW and 312Nm. Mated to a CVT automatic, it claims a combined fuel consumption of 6.4L/100km. While not as fuel-efficient as a Toyota RAV4, and with less extreme off-road capability than Jeep’s more rugged offerings, a potential Trailhawk variant could address the latter.
Measuring 4778mm long, the Cherokee sits at the larger end of the mid-size SUV segment, comparable in length to a Kia Sorento. This would provide valuable differentiation from the new Compass. The absence of a right-hand drive option is a significant missed opportunity.
4. Grand Cherokee
Jeep’s current WL-series Grand Cherokee has missed out on a turbo-diesel option, and the petrol V8 offered in the US never made it to Australian shores. The 5.7-litre Hemi V8 was phased out in the US, leaving a naturally aspirated 3.6-litre petrol V6 and a recently discontinued turbocharged 2.0-litre four-cylinder plug-in hybrid. For 2026, the V6 has been replaced by a new turbocharged 2.0-litre petrol four-cylinder, without a plug-in hybrid system.
The WL was withdrawn from the Australian market last year, reportedly due to the cessation of right-hand drive production. Australian buyers were not particularly receptive to the WL’s V6 petrol or the costly turbocharged four-cylinder plug-in hybrid. A turbo-four alone might not drastically change this, unless accompanied by significantly sharper pricing. Nevertheless, the new turbo-four appears to be a capable successor to the outgoing Pentastar V6, though it doesn’t address the latent demand for a turbo-diesel Grand Cherokee.
The turbocharged 2.0-litre Hurricane four-cylinder from the Grand Cherokee delivers impressive outputs of 238kW and 450Nm, surpassing the old Pentastar V6. This positions it competitively against rivals like the upcoming Hyundai Palisade and Mazda CX-90. The facelifted 2026 Grand Cherokee also features an updated infotainment system and minor cosmetic enhancements. Jeep has also hinted at the return of a V8 to the Grand Cherokee lineup, which, while not as popular as the turbo-diesel V6 in the previous WK2, would help the model stand out in a segment it once led in sales.
5. Grand Wagoneer
The mainstream ‘upper large’ SUV segment is largely dominated by Toyota and Nissan, with few non-luxury brands venturing into this territory. The GMC Yukon, launched in Australia in its Denali guise, targets luxury models.
A Jeep Grand Wagoneer, however, could offer a compelling American-brand rival to the Nissan Patrol and Toyota LandCruiser 300 Series, or at least compete with the Yukon. Mechanically related to the Ram 1500 pickup, the Grand Wagoneer, like the Yukon and 1500, is currently only produced in left-hand drive, necessitating a local right-hand drive remanufacturing program.
Jeep’s full-size SUV range debuted in the US in 2022, with extended-length models following. Initially offered with 5.7-litre and 6.4-litre V8 engines, these have been discontinued, leaving only six-cylinder powertrains. For 2026, the Wagoneer and Grand Wagoneer nameplates are being retired, with cosmetic updates and new ‘Jeep’ badging as Wagoneer transitions away from being a sub-brand.
The standard engine is a 3.0-litre twin-turbo Hurricane inline-six producing 313kW and 635Nm. A higher-output version of this engine has been retired for 2026. The significant development is the introduction of an extended-range electric vehicle (EREV) version, sharing its powertrain with the Ram 1500 REV. This EREV features a 3.6-litre petrol V6 acting as a generator for a 130kW generator, which charges a 92kWh battery pack. Dual electric motors provide power to the wheels, resulting in a combined output of 482kW and 841Nm, with a 0-96km/h time of five seconds.
The Grand Wagoneer is a substantial vehicle, with the standard-length version measuring 5489mm long and 2123mm wide. The extended-length ‘L’ versions are even more imposing at 5794mm long. While it would undoubtedly make a statement in Australia, a local launch is not anticipated in the near future.
