August 22, 2025 - 2026 Jeep Cherokee Goes Hybrid

This is the Telemetry Transportation Daily for August 22, 2025, and I'm Sam Abuelsamid, vice president of market research for Telemetry.

While full-size trucks like the Ford F-Series get the attention for being the top-selling nameplates in the US market, there are currently only four offerings, including Ford, GM, Stellantis and Toyota. The most popular overall segment in recent years has been compact and midsize crossovers and SUVs, which accounted for over 4.5 million units and 46% of sales in the first seven months of 2025. Among those, the top sellers have been the Toyota Rav4 and Honda CR-,V which are also the top nameplates for those two automakers. In fact, among automakers that don't have full-size trucks, these vehicles are typically their best sellers. However, the brand that arguably ignited Americans' love for utility vehicles has been notably absent from the segment since 2023. 

A case could be made that the 1984 Jeep Cherokee really kicked off the SUV boom. For model year 2026, Jeep is finally back with an all-new Cherokee that Stellantis hopes will allow it to recapture a leading spot in the segment. The new Cherokee has grown by more than 6 inches compared to the last generation and is nearly the same size as the previous generation Grand Cherokee. The Cherokee will be the third different vehicle produced from the STLA Large platform, which also underpins the Wagoneer S, the upcoming Recon and the Dodge Charger. It's the first to be equipped with a transverse four-cylinder engine, and at launch, it will be exclusively available with a brand-new hybrid powertrain. The 1.6-liter turbocharged four-cylinder is paired with a power-split e-CVT hybrid system similar in concept to those produced by Toyota, Honda and Ford. Jeep expects the 210-hp system to deliver about 37 mpg with its standard mechanical all-wheel-drive, similar to its smaller competitors. The design of the new Cherokee is much boxier than the last generation, hearkening back to the 1984 model, but it's in no way retro. 

The initial four trim levels that are launching are more targeted at the on-road use case, with the base version starting at $36,995 including delivery. Jeep is promising a trail-rated off-road variant, likely badged as TrailHawk, sometime in 2026 with a different powerplant, probably the corporate 2.0-liter turbo four-cylinder with at least 270-hp. 

Thanks for listening.