After a two-year absence, the iconic Jeep Cherokee is officially returning to global markets in late 2025. This isn’t just any ordinary comeback story – it represents a complete reimagining of one of America’s most beloved SUV nameplates.
Stellantis announced the Cherokee’s return with much fanfare, promising a ground-up redesign that honors the nameplate’s rich heritage. The new Cherokee will slot perfectly between the compact Compass and the larger Grand Cherokee, filling a crucial gap in Jeep’s lineup.
Why the Cherokee Disappeared in the First Place
The previous generation Cherokee quietly exited the scene in early 2023 after nearly a decade of service. Sales had been steadily declining since its 2014 peak, particularly in international markets where consumers were shifting toward more fuel-efficient alternatives.
Production ceased at the Belvidere, Illinois plant on March 1, 2023, marking the end of an era. However, Jeep executives always maintained this was a temporary hiatus rather than a permanent goodbye.
What Makes the New Cherokee Special
Revolutionary Hybrid Powertrain Technology
The 2026 Cherokee will debut with Jeep’s first turbocharged 1.6-liter hybrid powertrain. This represents a significant departure from traditional V6 engines that powered previous generations.
Early reports suggest the hybrid system will pair with a three-speed transmission specifically designed for electric assistance. This combination promises improved fuel economy without sacrificing the rugged capability Jeep enthusiasts expect.
STLA Large Platform Architecture
Built on Stellantis’ advanced STLA Large platform, the new Cherokee shares its foundation with the electric Wagoneer S and upcoming Recon models. This versatile architecture supports multiple powertrain options, from traditional gasoline engines to full electric propulsion.
The platform allows for a longer wheelbase compared to its predecessor, creating more interior space and better proportions. Engineers have pushed the wheels toward the corners, improving both aesthetics and handling dynamics.
Return to Boxy Design Language
Jeep has abandoned the polarizing split-headlight design of the outgoing model. The new Cherokee embraces a more traditional, boxy silhouette reminiscent of the beloved XJ generation that defined the nameplate from 1983 to 2001.
This design direction aligns with current market trends where consumers increasingly prefer rugged, authentic stylingover overly refined aesthetics. The Cherokee’s new look promises to stand out in a crowded midsize SUV segment.
Australia Gets Left Behind – Here’s Why
The Economics of Right-Hand Drive Production
Australia’s automotive landscape presents unique challenges that ultimately excluded it from the Cherokee’s comeback plans. Right-hand drive (RHD) conversion represents a significant financial burden for automakers, particularly for smaller markets.
Stellantis made the difficult decision to cease RHD production for several models, including the Cherokee. Engineering costs for right-hand drive variants became financially unsustainable when considering Australia’s relatively small market size.
Market Share Reality Check
Australia represents less than 1% of global Jeep sales, making it difficult to justify the substantial investment required for RHD production. This harsh reality has forced many automakers to prioritize larger, left-hand drive markets.
The numbers tell a sobering story. While Jeep sold over 30,000 vehicles in Australia during its 2014 peak, recent years have seen sales plummet to under 5,000 units annually.
Jeep Australia’s Declining Fortunes
The brand’s Australian operations have struggled significantly in recent years. Sales dropped 48.7% in 2024 alone, reflecting broader challenges with product positioning and market relevance.
Jeep’s local lineup has been gradually shrinking. The Grand Cherokee was discontinued in March 2025 after sales fell 94% from their 2014 peak, leaving Australian consumers with limited options.
What Australian Jeep Fans Are Missing
Segment-Leading Capability
The new Cherokee will compete directly with Australia’s best-selling SUVs like the Toyota RAV4, Mazda CX-5, and Hyundai Tucson. This segment accounted for nearly 25% of Australian new car sales in 2024, making the Cherokee’s absence particularly painful.
Australian consumers are missing out on what promises to be a genuine alternative to the Japanese and Korean dominance in this crucial market segment. The Cherokee’s traditional strengths in off-road capability and towing capacity would have resonated well with Australian buyers.
Advanced Technology Integration
The 2026 Cherokee will feature cutting-edge infotainment systems potentially including multiple dashboard displays and advanced connectivity features. These technologies represent significant advances over what’s currently available in Jeep’s reduced Australian lineup.
Safety technology will also receive major upgrades, with the new platform supporting the latest driver assistance systems and crash avoidance technologies.
Production and Timeline Details
Mexican Manufacturing Hub
Toluca Assembly Plant in Mexico will serve as the Cherokee’s primary production facility. This location offers strategic advantages for North American distribution while maintaining cost competitiveness.
The Mexican plant will also produce the Wagoneer S and Recon electric vehicles, creating manufacturing synergies across Jeep’s electrified lineup. Production is scheduled to begin in Q3 2025, with dealer availability expected by Q4 2025.
Global Distribution Strategy
While Australia misses out, the Cherokee will be widely available across North America and many international markets. European availability remains under consideration, depending on regulatory requirements and market demand.
The production timeline suggests early 2026 model year availability in most markets, giving Jeep time to ensure quality and reliability meet customer expectations.
Industry Impact and Competition
Midsize SUV Battlefield
The Cherokee’s return intensifies competition in the hottest automotive segment globally. Established players like Honda CR-V, Toyota RAV4, and Chevrolet Equinox will face a reinvented challenger with serious off-road credentials.
Jeep’s traditional strength in capability and authenticity could disrupt segment dynamics, particularly among buyers seeking something beyond mainstream alternatives.
Electrification Leadership
By launching with hybrid-only powertrains initially, Jeep demonstrates commitment to electrification leadership. This strategy positions the Cherokee ahead of many competitors still relying primarily on traditional gasoline engines.
The hybrid approach offers a middle ground for consumers not ready for full electric vehicles but seeking improved efficiency and environmental responsibility.
Australian Alternatives and Workarounds
Parallel Import Possibilities
Some specialist importers may offer left-hand drive Cherokee models through parallel import schemes. However, these vehicles would require expensive compliance modifications and wouldn’t include local warranty coverage.
Companies like Performax International have previously offered LHD-to-RHD conversions, though costs typically exceed $25,000 AUD, making this option economically unviable for most consumers.
Used Market Opportunities
The discontinued Cherokee KL generation (2014-2022) may see increased demand in Australia’s used car market. These vehicles offered solid capability and reliability, making them attractive alternatives for buyers seeking Cherokee ownership.
Japanese auction sites and other international sources occasionally offer low-mileage Cherokee models, though importing requires careful attention to Australian Design Rule compliance.
Future Prospects for Jeep Australia
Electric Vehicle Focus
Jeep Australia’s future strategy centers on electric vehicle adoption. The Wagoneer S and Recon EVs are scheduled for 2026 Australian introduction, potentially revitalizing the brand’s local presence.
These models will require significant investment in charging infrastructure and customer education to succeed in the Australian market.
Compass Replacement Strategy
The new-generation Compass with electric and hybrid powertrains is slated for 2026 Australian availability. This model may partially fill the void left by the Cherokee’s absence, though it targets a smaller market segment.
Pricing and positioning will be crucial for the Compass to capture Cherokee-intender buyers who require midsize SUV capability.
What This Means for Consumers
Limited Choice Reality
Australian SUV buyers face increasingly limited options from traditional American brands. Ford’s local withdrawal and now Jeep’s reduced lineup leave consumers with fewer alternatives to Japanese and Korean offerings.
This consolidation may drive buyers toward established alternatives like the Toyota Prado or Ford Everest for those seeking genuine off-road capability.
Pricing Implications
Reduced competition in the premium midsize SUV segment may lead to higher prices across the board. Without Cherokee pricing pressure, existing players have less incentive for aggressive pricing strategies.
Consumer choice becomes more limited, potentially reducing the value proposition available to Australian buyers seeking SUV alternatives.
Frequently Asked Questions
When will the new Jeep Cherokee be available globally? Production begins Q3 2025 with dealer availability expected by Q4 2025.
Why is Australia excluded from Cherokee availability? Right-hand drive production costs and Australia’s small market size made inclusion financially unviable.
Will the Cherokee offer traditional gasoline engines? Initial launch will be hybrid-only, with potential ICE options possible later.
Where will the new Cherokee be manufactured? Toluca Assembly Plant in Mexico will handle global production.
What platform does the new Cherokee use? STLA Large architecture, shared with Wagoneer S and Recon electric vehicles.
Will Jeep reconsider Australian Cherokee availability? No official statements suggest reconsideration, with focus shifting to electric vehicle introductions.
How does this affect Jeep’s Australian operations? The brand will focus on remaining models while preparing for electric vehicle launches in 2026.
What alternatives exist for Australian Cherokee buyers? Used KL generation models or competitors like Toyota RAV4 and Mazda CX-5.
Will the Cherokee name be retained? Ongoing discussions with Cherokee Nation may influence final naming decisions.
When might Australia see similar Jeep models again? Electric vehicle introductions in 2026 represent the next opportunity for expanded Australian availability.