Stellantis and Dongfeng Group have signed a new agreement to expand electric vehicle production in China through their joint venture, Dongfeng Peugeot Citroën Automobile (DPCA), as global automakers deepen cooperation around next-generation EV technologies and manufacturing.
The project, backed by investment exceeding 8 billion yuan ($1.17 billion), will see the Wuhan facility produce new Peugeot-branded electric vehicles for China and export markets, alongside Jeep-branded off-road EVs intended for global sales starting in 2027.
The agreement also reflects Stellantis’ broader strategy of strengthening partnerships with Chinese automakers as competition intensifies across the global EV market and demand grows for advanced electric vehicle technologies, supply chains, and manufacturing expertise.
Key Overview
- Stellantis and Dongfeng Group signed a new EV production agreement
- The project involves investment exceeding 8 billion yuan ($1.17 billion)
- DPCA will produce Peugeot and Jeep electric vehicles in Wuhan
- Production is expected to begin in 2027
- Peugeot EVs will target both China and export markets
- Jeep-branded electric off-road vehicles will be built for global markets
- Stellantis plans to contribute around €130 million to the project
- The agreement expands a partnership spanning more than 30 years
Stellantis and Dongfeng Expand EV Partnership in China
Stellantis and Dongfeng Group have signed a new agreement to expand electric vehicle production in China through their long-running joint venture, Dongfeng Peugeot Citroën Automobile (DPCA), as global automakers continue strengthening partnerships around next-generation EV technologies and manufacturing capacity.
The agreement marks another major step in Stellantis’ strategy to deepen cooperation with Chinese automotive companies amid intensifying competition in the global electric vehicle industry and rising demand for advanced EV platforms, intelligent driving systems, and battery technologies.
Under the deal, DPCA will manufacture Peugeot and Jeep-branded electric vehicles at its Wuhan production facility beginning in 2027.
The broader project is expected to involve investment exceeding 8 billion yuan (approximately $1.17 billion), with Stellantis contributing around €130 million as part of the expansion initiative.
The companies said implementation of the agreement remains subject to regulatory approvals and the finalization of operational and economic terms.
The development also reflects the growing importance of China’s EV ecosystem within the global automotive industry as international manufacturers increasingly rely on Chinese supply chains, battery technology expertise, and production infrastructure to remain competitive.
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Peugeot EV Production to Support Global Expansion
As part of the agreement, DPCA will initially manufacture two new Peugeot-branded next-generation electric vehicles at the Wuhan facility for both the Chinese domestic market and international export destinations.
The vehicles are expected to incorporate design elements and technologies inspired by Peugeot concept models previously presented at the Beijing Auto Show in 2026.
The project forms part of Peugeot’s broader international growth strategy as the brand seeks to strengthen its presence in both domestic Chinese markets and overseas EV segments.
Executives said the initiative would allow the company to leverage China’s advanced EV supply chains and manufacturing ecosystem while supporting more efficient global production expansion.
“With a track record of more than 30 years of collaboration and shared automotive expertise, Stellantis and Dongfeng are ready to further leverage their strengths and introduce all-new vehicles with cutting-edge EV technologies from brands that customers worldwide trust and love,” Stellantis Chief Executive Officer Antonio Filosa said in a statement.
The companies also emphasized that the project has received support from industrial development policies implemented by Hubei province and the Wuhan municipal government, reflecting local authorities’ efforts to strengthen China’s position as a global EV manufacturing hub.
Analysts say regional government backing remains a major advantage for automotive investment projects in China, particularly in strategic sectors such as electric vehicles, batteries, and advanced manufacturing technologies.
Jeep Returns to Chinese Production
The agreement will also mark the return of Jeep vehicle production in China after Stellantis previously ended a separate Jeep manufacturing joint venture with GAC in 2022.
Under the new arrangement, DPCA plans to manufacture two next-generation Jeep-branded off-road electric vehicles in Wuhan beginning in 2027, with the vehicles intended primarily for global markets.
The move represents an important strategic shift for Jeep as the brand accelerates its electrification strategy while seeking to strengthen production efficiency and international competitiveness.
Since ending the previous Jeep joint venture, Stellantis has largely relied on imports to sell Jeep vehicles in China.
By reintroducing localized production through DPCA, Stellantis may be able to improve supply chain integration, lower manufacturing costs, and expand access to advanced EV technologies developed within China’s automotive sector.
Industry analysts note that China has become increasingly central to global EV development due to its dominance in battery production, critical minerals processing, charging infrastructure deployment, and electric vehicle supply chains.
For international automakers, partnerships with Chinese manufacturers are therefore becoming increasingly important for maintaining competitiveness in the transition toward electric mobility.
Partnership Extends More Than Three Decades
The latest agreement builds on a partnership between Stellantis and Dongfeng that spans more than 34 years.
The DPCA joint venture has historically played a major role in manufacturing Peugeot and Citroën vehicles for the Chinese market while also serving as a strategic platform for broader automotive cooperation between the companies.
Alongside the production agreement, Stellantis and Dongfeng also signed a non-binding strategic memorandum of understanding designed to expand collaboration across manufacturing, research and development, industrial expertise, and future technology development.
Executives from both companies described the agreement as an important step in accelerating the transformation of the joint venture amid rapid changes within the global automotive industry.
Dongfeng Group Chairman Qing Yang said the cooperation would create “a new path featuring complementary strengths and win-win outcomes for all parties.”
He added that the agreement would inject “strong momentum into DPCA’s transformation” by combining Hubei’s industrial strengths, Stellantis’ global reach, and Dongfeng’s intelligent electric vehicle technologies.
Dongfeng also continues to maintain a stake of just over 1% in Stellantis following the 2021 merger between PSA Group and Fiat Chrysler that created the multinational automotive company.
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Chinese Automakers Gain Growing Influence
The deal also highlights the increasingly influential role Chinese automakers and EV technology providers are playing within the global automotive industry.
Over the past several years, Chinese manufacturers have rapidly expanded capabilities across battery development, electric drivetrains, software integration, autonomous technologies, and large-scale EV production.
As a result, international automakers are increasingly seeking partnerships with Chinese firms not only for market access within China, but also for access to advanced EV technologies and cost-efficient manufacturing systems.
The Stellantis-Dongfeng agreement comes amid a wider trend of growing collaboration between European automakers and Chinese EV companies.
Earlier this month, Leapmotor and Stellantis announced plans to deepen their existing partnership through the Leapmotor International joint venture, which already markets vehicles across Europe.
Reports also recently indicated that BYD has held discussions with Stellantis and other European manufacturers regarding the use of underutilized production capacity in Europe as Chinese EV makers expand globally.
Analysts say such partnerships reflect the changing balance of power within the automotive sector, where Chinese manufacturers are increasingly becoming technology leaders rather than simply low-cost production partners.
Global EV Competition Continues Intensifying
The expansion of the DPCA joint venture comes as competition within the global electric vehicle market continues intensifying rapidly.
Automakers worldwide are racing to scale EV production, secure battery supply chains, lower manufacturing costs, and improve software and intelligent driving capabilities as consumer demand for electric vehicles grows across major markets.
At the same time, geopolitical tensions, trade barriers, tariffs, and industrial policies are reshaping automotive investment decisions globally.
For companies such as Stellantis, partnerships with Chinese firms may provide access to critical technology advantages and manufacturing efficiencies at a time when EV competition is becoming increasingly globalized.
However, growing scrutiny from regulators in Europe and the United States regarding Chinese automotive supply chains could also create additional political and trade risks in the years ahead.
Despite those concerns, analysts say many international automakers remain highly dependent on Chinese manufacturing ecosystems due to the country’s scale, infrastructure, and technological capabilities.
Outlook
The expanded partnership between Stellantis and Dongfeng Group highlights the growing importance of China’s electric vehicle ecosystem within the global automotive industry as automakers increasingly collaborate on EV production, technology development, and supply chain integration.
The agreement also reflects how international manufacturers are continuing to deepen ties with Chinese companies despite rising geopolitical tensions and growing trade scrutiny surrounding EV technologies and industrial policy.
For Stellantis, the partnership may help strengthen access to advanced EV manufacturing capabilities and support broader international expansion plans for both Peugeot and Jeep-branded electric vehicles.
At the same time, the project underscores how China remains central to the future of electric mobility due to its leadership in batteries, EV supply chains, intelligent vehicle technologies, and large-scale manufacturing capacity.
As competition across the global EV market continues accelerating, partnerships between international automakers and Chinese manufacturers are likely to play an increasingly important role in shaping the next phase of the automotive industry’s transition toward electrification.
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Sources: Just Auto, Yahoo Finance ,Global Banking & Finance Review, Investing.com , Idéal investisseur, RTE
