New Jeep Compass here late 2017

Jeep says its all-new Compass small SUV will become the best-selling model in its range when it goes on sale in Australia late this year.

That's in part due to a sub-$30,000 starting price we expect will be $26,990.

The Compass, which will be built in India for the Australian market, will replace both the existing Compass and the Patriot in Jeep’s local line-up.

Presenting a familial face and the choice of two ‘intelligent’ all-wheel drive systems – one of which Jeep claims will give it best-in-class off-road ability – the Compass will bring as many as 70 new safety and security features, and will also be available in front-wheel drive.

On-road dynamics are also set to improve, thanks largely to a stretched version of the stiffer Renegade-based chassis. Selected models are also expected to receive new Koni-sourced frequency selective damping (FSD) and Jeep’s Driving Steering Torque (DST) system, essentially torque vectoring by brake, which aims to reduce the incidence of understeer/oversteer.

Engines for Australia will include a 134kW/237Nm 2.4-litre Tigershark four-cylinder petrol and a 125kW/350Nm 2.0-litre MultiJetII four-cylinder turbo-diesel.

Owing to a lack of popularity, manual variants may not be offered despite the availability of a six-speed manual in other markets. Instead, Australian models will receive a mix of six- and nine-speed automatics (depending on variant).

“Manual [models in the segment] only account for five per cent of the market,” explained FCA Australia senior manager of corporate communications, Glenn Butler.

“The starting price can get people into showrooms. But we’re working on our pricing, and we’re confident we’ll have a solid pricing offer when we get to market.

“Australia is largely an automatic transmission country, [and although] we could look at offering a price-leading manual [variant] to get people in, I think it’s starting off disingenuously. You’re basically telling people ‘come in at this price but you’ll walk out two-grand dearer’, and we don’t want to do that,” Butler explained.

In its home market, the Compass will be offered in four grades with familiar Jeep names: Sport, Latitude, Limited and Trailhawk. motoring.com.au understands all are slated for the Australian market, though final specification and pricing details are yet to be determined.

“We’re confident that the Compass range, from Sport to Trailhawk, offers something for everybody,” said Butler. “We haven’t confirmed the spec or model line-up just yet, but two-wheel drive makes up 50 per cent of [Australian] sales in the C-SUV segment, and it would be remiss of us to leave that opportunity untapped.

“It’s important for us to cover a significant area of the market, [but] we’re not chasing sales. We’re not going to go after the Hyundai Tucson or Toyota RAV4, for example. Jeep in the past has chased sales, and it’s caused us no end of pain. What we want to do is build the foundations for a strong future. We will grow sales, but we will grow them carefully.”

Key to the technology updates inside the Compass is FCA’s fourth-generation Uconnect infotainment array, which is available in four derivations. The line-up includes a faster processor and improved graphics. Apple CarPlay and Android Auto are also included, as are satellite radio, navigation, Bluetooth connectivity and sat-nav.

For the driver there's the largest configurable full-colour LED instrument panel in the segment at 3.5- or 7.0-inch, steering wheel-mounted audio, trip computer and cruise control buttons, and voice control. LED headlights, a 506-Watt Beats premium audio system and 18-inch alloy wheels will be available.

There’s also a wide array of electronic driver assistance technologies, including blind-spot monitoring, electronic roll mitigation, forward collision warning, lane departure warning, rear cross-traffic alert, reversing camera and sensors, seven airbags and stability/traction control – all of which should help improve upon the outgoing model’s two-star EuroNCAP/four-star ANCAP safety ratings.

Positioned between the Renegade and Cherokee in Jeep’s line-up, the Compass will vie with as many as 24 rivals Down Under, including the Mazda CX-3, Honda HR-V, Fiat 500X and Suzuki Vitara.

And although overlaps in pricing in Jeep’s home camp are assured (the Renedage ranges from $26,000 to $39,000, while the Cherokee starts at $36,000), FCA’s local representative says there’s adequate differentiation to attract a solid buyer base.

“The Renegade, Compass and Cherokee are three very different vehicles with very different offerings,” Butler explained. “When you look at the smaller Renegade it’s a very funky little SUV with off-road capability, and aimed at younger buyers.

"The Compass has a maturity to it, aimed at a broader audience, where the Cherokee is probably aimed more at the type of buyer who’d look at a [Toyota] RAV4, a slightly bigger vehicle the family in mind.

“But as with any new product coming into a model range, there may be ramifications for other models – repositioning if you like,” he continued. “It’s too early to say [if Renegade or Cherokee pricing will be adjusted], but we will get the right pricing for Compass and if we need to make any adjustment to the pricing of Renegade or Cherokee as a result, then we will consider it and put a business case forward.”

It’s anticipated the new model will sell far more strongly that its predecessor, the outgoing Compass finishing 2016 with just 1.1 per cent of the Small SUV segment (1097 units); well behind the ladder-topping Mazda CX-3 (18.7 per cent and 18,334 units) and Mitsubishi ASX (18.5 per cent and 18,126 units).

Visit motoring.com.au again this Friday for our International Launch Review of the all-new Jeep Compass.