Is this the newest Toyota RAV4 Hybrid fighter? Jeep to launch 'mainstream' mid-sized hybrid SUV in 2025, but can it turn sales around for the brand as it targets 2025 Mazda CX-5, Hyundai Tucson and Kia Sportage?

Jeep announced plans at the Los Angles motor show last week to add a brand-new hybrid model to its lineup for 2025.

The new model is poised as a “mainstream” mid-sized replacement for the Cherokee SUV, according to CEO Antonio Filosa. That model was discontinued in 2023 due to lagging sales and Jeep’s broader plans for electrification.

Though unlike some of Jeep’s more serious hybrid offerings, such as the Grand Cherokee 4xe and Compass 4xe, the new model is not expected to go down the plug-in hybrid route.

It will instead offer regular hybrid tech, with US-based Automotive News reporting Jeep plans on leaving the door ajar for the new platform to go fully-electric if the market requires it.

Exact specifications are unclear for now, though it's a fair change of pace for the brand given that its only other hybrid offering besides its plug-in hybrid vehicles comes by way of 48-volt mild hybrid technology.

Jeep has instead focused on battery-electric vehicles, such as the compact Avenger SUV, which was launched in Australia this month, and the larger Wagoneer S, which is expected to arrive in Australia in late 2025.

The value of regular hybrid technology is increasingly being acknowledged, particularly as major automakers struggle with the EV transition, and more and more makers are making the switch.

At this stage it is unclear whether the prospective model will arrive in Australia, although we expect the local market to make a strong business case given the skyrocketing demand for regular hybrids witnessed this year and Jeep's dwindling sales locally.

As of October, sales of regular hybrid models – not including plug-in hybrid – have increased some 83.3 per cent compared to the same time last year.

In the same period, Jeep's sales have dipped 48.3 per cent, with its global parent company Stellantis – the owner of Fiat, Ram, Peugeot, Citroen and Alfa Romeo – recording a 48 per cent profit loss in the first half of 2024.

The new model could be a step in the right direction to help turn the company's fortunes around.