Jeep, the renowned Stellantis brand, projects a significant growth in its sales of plug-in hybrid electric vehicles (PHEVs) to a range of 160,000 to 170,000 in the U.S. this year, marking a substantial increase of 40% to 50% from last year. This surge in Jeep’s PHEVs sales comes at a time when the company is also introducing its maiden all-electric SUVs to the U.S. market, the first of which is the Wagoneer S.

Jeep CEO Antonio Filosa sees the current market trends as a perfect opportunity to diversify, emphasizing that consumers should have freedom of choice. By coupling an internal combustion engine with the prowess of EV technologies, PHEVs could instigate a leap in the consumer adoption of electric vehicles, acting as a stepping stone towards fully electric models.

Jeep’s ambitious PHEV sales projections for this year would surpass Stellantis’ overall 2023 U.S. sales of such vehicles, which stood at about 143,000 units. This anticipated increase in PHEV sales would also eclipse the industry prediction of 27.5% segment growth for this year.

Jeep’s PHEV sales last year recorded an impressive 113,113 units, inclusive of 67,429 Jeep Wranglers and 45,684 Jeep Grand Cherokees. As of the first quarter this year, sales had reached 31,750, a 47% increase compared to the same period the previous year. Thus, making Jeep a leader in U.S. PHEV sales.

Facing stiffening emissions and fuel economy norms, Jeep has leveraged PHEVs to balance sales of its traditional gas-powered SUVs. The brand’s roadmap includes the introduction of the Wagoneer S EV this autumn, alongside a Wrangler-like EV model named the Recon. A replacement for the discontinued Cherokee midsize SUV is also due during the first half of the upcoming year.

Notably, the automaker plans to expand its range by adding new plug-in ‘range-extender’ models to its gasoline-powered Wagoneer and Grand Wagoneer large SUVs in 2025. According to Filosa, the company is perfectly equipped prize-wise and product-wise to reach its target sales volume.

Explaining the technical aspects of hybrid and plug-in hybrid vehicles, they have a mix of a traditional engine and EV technologies. Plug-in hybrids typically possess a more substantial battery to facilitate all-electric driving for a predefined number of miles until there’s a need for the engine to power the vehicle or electric motors.

Concurrently, the company is discussing whether to launch traditional hybrid vehicles in the U.S. in addition to its plug-in models. Stellantis’ Chief Technology Officer, Ned Curic, mentioned that this decision would hinge on how the market responds to their hybrid vehicles.

Curic shed light on their “range-extender electric vehicle” models, also known as REEVs, stressing that these vehicles differ slightly from common hybrids. The REEV operates as a zero-emission vehicle until the onboard generator powers the vehicle when the battery is depleted. This generator is backed by a 3.6-liter V6 engine. Stellantis’ maiden REEV vehicle is anticipated to be the Ram Ramcharger full-size pickup truck.

Speaking on the pricing strategy, Curic noted that while the REEVs would be priced above PHEVs, they would still be more affordable than all-electric models. All these measures paint a promising picture of Jeep’s future in the hybrid and electric vehicle market.