Multinational automotive giant Stellantis plans to launch a new small, low-cost category of fully electric vehicles, as it looks to revive Europe’s shrinking entry-level car segment and the struggling manufacturing sector.
The automaker, which possesses a legendary portfolio of brands like Fiat, Opel and Citroën, said production of the affordable, compact and fully electric “E-Car” will start in 2028 at its Pomigliano d’Arco plant in Italy, with potential for a “significant” volume increase later. The plant currently manufactures models including the Fiat Panda, which is set to remain in production at least until 2030.
The production blueprint of the new vehicle, which will reportedly have a price tag of around 15,000 euros (USD 17,500), comes at a time when automakers are trying to undo the neglect they had for low-cost, entry-level models, with rising electrification costs and safety regulations being cited as the primary factors, along with the pursuit of higher margins which drove the industry towards producing mid-sized and larger cars.
“Stellantis’ E-Car will draw on partnerships to keep costs down and speed up development and will help support local manufacturing jobs. Europe, where safety and emissions rules have significantly added to the cost of new cars, needed a new generation of stripped-down, cost-efficient small vehicles in the style of Japan’s kei cars,” the company said.
As per CEO Antonio Filosa, the automaker is looking to tap into demand for “small, stylish vehicles” made in Europe for the European market, adding the E-Car would come in “new models for multiple brands”.
“The European Commission has recognised the new E-Car segment for its potential to boost European design and manufacturing jobs and support a wider EV adoption, especially for everyday city mobility,” Stellantis added further.
However, it also warned that without more affordable EVs, the European Union’s push towards zero-emission mobility risks stalling, particularly among lower-income consumers.
“Safety features in the EU, such as sensors detecting whether a driver is falling asleep or an SOS button, are required on cars from the smallest ones up to larger SUVs, with a larger impact on the cost of cars used mainly for short city journeys,” the automaker noted.
As per the analysts, with expected high volumes, the E‑Car should help Stellantis improve its underused production capacity in Europe, a goal Filosa has been aggressively pursuing by expanding cooperation with Chinese partner Leapmotor. In earlier May, the two automakers announced the joint production of two models in Spain, while Stellantis suggested manufacturing cooperation with Dongfeng could expand beyond China.