Three years ago, Stellantis had a clear plan for South America. Now the company is tearing it up.
During a Sao Paulo press event on August 13, 2026, Herlander Zola, Stellantis's South America chief, told reporters at 1:40 p.m. local time that the company must keep pace with a market that has shifted. "The market has changed, we know it has changed, and we need to be competitive," Zola said.
The culprit is no secret: Chinese carmakers have been eating into Stellantis's market share, especially for its Jeep brand. These rivals are offering newer technology at similar prices, which has won over buyers who used to walk into a Jeep dealership without thinking twice.
Nowhere is the squeeze tighter than in Brazil, where Jeep has been losing ground. The brand was slow to refresh its products and tech, and Chinese brands were happy to fill the gap.
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Data from Fenabrave through July 2026 show Jeep's Brazilian market share slipping. Uruguay tells a similar story, but with a twist. There, electrified vehicles have exploded from about 2% of the market to 30% in just one year.
That fast shift caught Stellantis off guard, and it's now scrambling to offer the electric and hybrid options that buyers in different parts of the region actually want. "The plan hasn't changed, but it needs adaptations, adjustments," Zola said.
So what's Stellantis doing about it? For starters, the company is studying how to take Leapmotor's range-extender powertrain, to make, a Chinese partner, and equip it to run on ethanol and gasoline. This would let drivers go further without needing a full charge, which could be a big deal in a region where charging stations are still rare. The company has already begun developing the system plan for South America and is also considering cars that run purely on sugarcane ethanol, though that depends on government incentives.
Stellantis plans to present its updated regional technology view later this year. Zola said the company can recover ground with the new Avenger. "Jeep is perhaps one of the brands that suffers most from Chinese offensive and the adoption of new technologies in the price range where Jeep operates, that's why we need to respond," he said. "I have no doubt that the Avenger is a powerful weapon for us to regain ground in a segment where we were losing market share, and I'm sure we'll start to recover."
For drivers in South America, this is good news. Competition is pushing Stellantis to bring its newest tech to the region faster, which means more choices and better prices.
If the newly adapted flex-fuel range system works out, you could see a vehicle that combines the convenience of a gas station with the efficiency of an electric motor, and it might be lowering all to run.
The real test is whether Stellantis can move fast enough. Chinese brands have already proven they can win over buyers who want the latest features without paying a premium. If Stellantis wants to hold off those customers, it will have to show up with something better than a familiar name. The Avenger is a promising first step, but the race is far from over.
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