- Stellantis confirms compact affordable electric city cars built for European buyers.
- EU’s new kei-style M1E rules could dramatically lower costs for tiny electric vehicles.
- Fiat Panda and Citroen 2CV spiritual successors appear increasingly likely under plan.
Europe’s big carmakers were built on the backs of small, ultra-affordable cars like the original Citroen 2CV and Fiat Panda. Now Stellantis is ready to do it all over again, with a range of tiny EVs starting in 2028.
Stellantis this week announced a new affordable EV initiative called E-Car that will build a line of small electric cars across multiple brands. They’ll be built at the company’s Pomigliano plant in Italy, home to generations of budget friendly Fiat models over the years, and currently producing the Alfa Romeo Tonale and existing base Panda.
Related: Stellantis Just Decided Which Four Brands Actually Matter And Fiat Is One
The automaker says the new project will focus on compact EVs designed specifically for European cities, shorter commutes, and buyers who’ve effectively been priced out of the new car market entirely. That shrinking affordability gap has become a huge issue across Europe. Average vehicle prices have climbed dramatically in recent years, as has the average age of used cars on the road, while genuinely cheap new cars have nearly vanished.
Much of the motivation comes from fresh European Commission regulations creating a new M1E category for small electric vehicles under 4,200 mm (165.4 inches) long. Think of it as Europe’s rough equivalent of Japan’s kei car philosophy, only with batteries instead of tiny 660 cc turbocharged engines. The proposed framework reportedly gives automakers more flexibility and long term regulatory certainty compared with other types of cars, making the business case far less terrifying than before.
Less Grande Panda
Stellantis hasn’t confirmed exactly which models will arrive first, but the clues aren’t subtle. The company specifically highlighted Pomigliano’s history building iconic affordable cars like the Fiat Panda, while recent reports have pointed toward a smaller, cheaper Panda inspired by the original 1980s model and designed to fit under the new Grande Panda. Citroen also appears eager to revive the spirit of its legendary 2CV with a no nonsense electric runabout sitting beneath the C3.
Recent reports suggested that Stellantis CEO Antonio Filosa’s new plan for the company involves putting most energy into four of its more than a dozen brands. Fiat is one of them, along with Jeep, Ram and Peugeot, while the others would take versions of those brands’ cars and technologies.
