Stellantis has sealed a €1bn joint venture with Wuhan-based Dongfeng to manufacture Peugeot and Jeep vehicles in China, aiming to rebuild its presence in the world's largest auto market.

Under the deal, the European group will invest €130mn of the combined Rmb8bn outlay. From 2027, Dongfeng's Wuhan plant will produce two Peugeot-badged NEVs for China and export, plus two Jeep off-road hybrids for global markets. CEO Antonio Filosa is pushing this strategy to revive Stellantis after years of weak European and US sales.

Foreign brands now command just 30% of China's market, down from 64% in 2020, as BYD and Leapmotor dominate. The timing is tricky, with petrol car sales collapsing and EV growth slowing amid brutal price wars and overcapacity. Stellantis also recently transferred a Spanish factory to Leapmotor, signaling deepening dependence on Chinese partners.