Jeep Cherokee Returns with Hybrid Focus, EVs Side-lined
In a significant move for the automotive landscape, the Jeep Cherokee is set to re-enter the market in 2026, marking its return with an emphasis on hybrid propulsion. This strategic redirection sees the iconic SUV equipped with an entirely new hybrid powertrain, promising an impressive driving range exceeding 500 miles and an estimated 37 miles per gallon. The introduction of this hybrid variant signals a notable shift in Jeep's product strategy, particularly as the broader industry navigates the complexities of electrification and the evolving landscape of government incentives.
The newly unveiled 2026 Cherokee arrives after a two-year absence, during which Jeep has seemingly recalibrated its approach to future vehicle offerings. This re-entry is not merely a revival but a comprehensive overhaul, designed to infuse the brand with renewed vitality and invigorate its sales performance. The decision to prioritize a hybrid model, powered by a combination of an internal combustion engine, two electric motors, and a battery, reflects a pragmatic response to market demands and the immediate economic environment.
This hybrid setup features a 1.6-liter turbo-four engine, delivering 210 horsepower and 230 lb-ft of torque. Jeep asserts that this configuration will offer superior fuel economy compared to many of its rivals, positioning the Cherokee as a competitive option for consumers seeking efficiency without fully committing to electric. Beyond its mechanical advancements, the 2026 Cherokee also boasts an array of enhancements, including more spacious interiors, cutting-edge technology, and a revitalized aesthetic. While retaining its classic rugged appeal, the vehicle now presents a more upright, longer, and taller profile, complemented by modern LED headlights featuring distinctive U-pattern daytime running lights.
Inside, the new Cherokee integrates advanced digital interfaces, including a 10.25-inch driver cluster and a 12.3-inch infotainment display, complete with wireless Apple CarPlay and Android Auto capabilities. Every new Cherokee will also come equipped with Stellantis' 'Connect Once' services package, ensuring over-the-air updates for a decade, highlighting a commitment to long-term technological relevance. The model will be available in four trims: Cherokee, Laredo, Limited, and Overland, with pricing for the base model starting at $36,995, including a destination fee. The higher-tier Limited and Overland trims are slated for release later this year, followed by the entry-level and Laredo models in early 2026.
This renewed focus on hybrid technology comes at a curious juncture, as reports suggest that Stellantis, Jeep's parent company, has already begun scaling back production of its all-electric vehicles, alongside certain hybrid models. This reported curtailment includes models like the Jeep Wagoneer S, Dodge Charger Daytona EV, and plug-in versions of the Wrangler, Cherokee, and Chrysler Pacifica. Such adjustments appear to be a direct consequence of the impending expiration of the $7,500 EV tax credit, which is set to conclude at the end of September. With Stellantis having experienced a 10% decline in US sales during the first half of 2025, the new hybrid Cherokee is positioned as a critical component of the brand's strategy to rebound. Concurrently, Jeep is offering substantial incentives on the 2025 Wagoneer S, underscoring the dynamic and sometimes unpredictable nature of the automotive market's transition to new energy vehicles.