Fiat and Chrysler announced a deal on Saturday to produce three new Jeep models for China's Guangzhou Automobile Group Co.
The Chinese market is the biggest market for Jeeps outside the U.S., according to USA Today.
Fiat is looking to use the deal as a way to increase sales in China and catch up to competitors.
Production of the vehicles is set to start by late 2015. GAC Fiat is also looking to develop a Jeep uniquely designed for China, Reuters reported.
Sergio Marchionne, chief executive of Fiat Chrysler, said in a statement that the deal is "the next chapter in the proper utilization and expansion on a global scale of the Jeep brand."
The statement included that GAC Fiat is establishing a production site for the Jeeps in Guangzhou, but no estimated cost was offered.
The Fiat Viaggio is currently made in China from the joint venture between Guangzhou Automotive, Chrysler and Fiat, but there aren't any presently Jeeps produced in China, USA Today reported.
Jeep sold almost 60,000 vehicles last year in China. Chrysler Spokesman Gualberto Ranieri said the automobiles that are going to be made in China will only be sold in the country.
James Chao, Asia-Pacific director for consultancy IHS Automotive, said Jeep is working on a lineup of vehicles that focus on fuel efficiency, The Wall Street Journal reported.
"I expect them to do well in China, given the overall boom in SUVs here and heightened concerns about the environment," Chao said.
He added that there is a small number of Jeeps in China, but the car brand is successful in the country.
No information has been released on the type of models that will be produced, Reuters reported. Marchionne said the Grand Cherokee and Wrangler would not be made in China, but "anything in between is possible."
Models that will most likely be made in the deal include the Renegade and the Cherokee.
