Rugged SUV maker Jeep officially announced plans to launch a Renegade EV in the US for under $25,000. However, industry experts believe the low starting price point may be hard to hit. Can Jeep deliver an electric Renegade for under $25K?
A new affordable Jeep EV is coming to the US
Jeep confirmed plans to launch a new Renegade EV during its Investor Day earlier this month. The electric SUV will start at under $25,000 as Jeep aims to revamp the brand in the US.
As part of the overhaul, the rugged SUV brand is returning to the small UV segment in North America. Jeep will add a new model every year over the next three years to build a 13-vehicle lineup.
By 2027, Jeep will launch six fully electric vehicles. These will include the Wagoneer S, Recon, a new mainstream UV, and the Renegade EV, which will start under $25,000.
The revamped lineup will help increase market coverage in North America from 45% in 2023 to 85% in 2027.
Stellantis CEO Carlos Tavares told investors last month that a $25,000 EV was coming to the US very soon. “If you ask me what is an affordable BEV, I would say 20,000 euros in Europe and $25,000 in the US,” Tavares explained.
Like the $21,500 (20,000 euro) Citroen e-C3, launched in Europe, the US “will have a $25,000 Jeep very soon,” Tavares said.
Is a $25,000 Jeep Renegade EV possible?
Although Jeep dealers say an affordable electric Jeep Renegade would likely sell, can the brand deliver it for under $25,000?
Stellantis dealer Ralph Mahalak Jr. would welcome a low-cost electric Jeep. Mahalak owns six dealerships in Ohio, Michigan, and Florida.
“If it’s inexpensive and competitive with all the other the little EVs in that price class and that size class, obviously I’m up for it,” he told Automotive News.
Mahalak explained that the model would need 200 to 300 miles range to compete in the US market.
According to global auto forecasting firm AutoForecast Solutions, Jeep may have a hard time hitting its price target. The firm does not expect Jeep to build the Renegade EV in North America, which would disqualify it from receiving federal incentives.
“The way it’s laid out right now, it’s either going to come from Poland, which is most likely, or Brazil,” AutoForecast Solutions VP Sam Fiorani said.
Either way, Fiorani explained, “it would not get IRA incentives on it, which makes it a wholly $25,000 vehicle,” which would be difficult to achieve.
Jeep could eliminate features or reduce interior quality to meet its target. However, it can’t go too cheap, or Jeep could hurt the brand.
Other industry analysts, like Edmunds’ Joseph Yoon, believe a Jeep Renegade EV could sell, even if it costs slightly over $25,000.
“If the Renegade comes in at, let’s say [$30,000] starting for the launch models, or maybe even [$35,000],” Yoon believes it could put up some numbers for Jeep. But, again, Jeep can’t cut too many corners regarding range, features, and interior quality.
Electrek’s Take
Jeep plans to enter the affordable EV segment in the US (and globally) as part of a wider brand overhaul.
Jeep’s US sales slipped 6% last year after falling 12% in 2022. After sales peaked in 2018, reaching nearly 1 million, Jeep has struggled to gain momentum.
Jeep CEO Antonio Filosa believes Jeep’s new electric models can help turn things around. The new Wagoneer S, unveiled last month, will compete with the best, including Tesla. Filosa said “Something like 100% will be conquested,” regarding Wagoneer S sales.
“The brands we are targeting are mainly Tesla… but there are many others,” Jeep’s chief boasted earlier this month.
Meanwhile, most rivals are also targeting the low-cost EV segment at this point. Kia opened orders for its EV3, starting at $30,700 (KRW 42.08 million), in Korea earlier this month.
Although Volvo EX30 deliveries are delayed again for the US, the compact electric SUV starts at $35,000 with deliveries now slated to begin next year. In Europe, the EX30 is already off to a hot start.
Chevy’s new Equinox EV is rolling out, with a $35,000 model coming later this year. Volkswagen, Ford, Hyundai, and several others are all looking to capitalize on the climbing demand for low-cost EVs.
Would you buy a Jeep Renegade EV for under $25,000? What about $35,000? Let us know what features and range you would expect in the comments below.
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