Stellantis NV and its partner Dongfeng Group will invest more than €1 billion to build Peugeot and Jeep electric vehicles in China for both domestic and global sales, deepening a three-decade-long partnership and using the country as a key export hub.
"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," said Antonio Filosa, Stellantis CEO, in a statement released on May 15, 2026.
The agreement outlines a combined investment of over 8 billion Chinese Yuan (approximately €1 billion), with Stellantis contributing around €130 million. The deal will see the Dongfeng Peugeot Citroën Automobile (DPCA) joint venture produce four new all-electric models at its Wuhan plant, starting in 2027. The plan includes two new Peugeot models and two new Jeep off-road vehicles, all based on new EV platforms.
The move signals a strategic shift for Western automakers, who are increasingly leveraging their Chinese partnerships to develop and export EVs globally. This allows them to tap into China's advanced EV supply chain and manufacturing scale to build more competitive electric models, a strategy also being explored by Ford with its Chinese partner Geely.
Under the terms of the new strategic cooperation agreement, the vehicles produced in Wuhan are explicitly intended for both the Chinese market and for export to international markets. This marks a significant expansion of the joint venture's original purpose, positioning it as a crucial part of Stellantis's global EV strategy.
The decision to build and export from China comes as other legacy automakers re-evaluate their Chinese operations. While some analysts worry about the long-term risks of enabling Chinese competitors, Stellantis is betting it can use the partnership to its advantage. The deal provides its Leapmotor joint venture with an easy entry into the European market, allowing it to avoid costly import tariffs by building vehicles locally.
The Stellantis-Dongfeng deal is part of a wider industry trend. Faced with underused factories in Europe and intense competition in the EV space, legacy carmakers are turning to partnerships with Chinese firms. However, not all Chinese brands are open to collaboration. BYD, the country's leading EV manufacturer, has stated it prefers to operate its own plants and is not seeking manufacturing partnerships with Western brands.
"By integrating Hubei’s industrial strengths, Stellantis’ global layout advantages and Dongfeng’s intelligent electric vehicle technologies, a new path featuring complementary strengths and win-win outcomes for all parties has been forged," said Qing YANG, Dongfeng Group Chairman. The project is still subject to the execution of implementation agreements and regulatory approvals.
This article is for informational purposes only and does not constitute investment advice.
