Stellantis has confirmed plans to launch a range of new affordable electric city cars in Europe, with production due to begin in Italy in 2028.
The original equipment manufacturer (OEM) said the new E-Car programme will focus on delivering small, affordable battery electric vehicles developed and built in Europe for European customers.
The announcement follows on from the European Union’s proposed new “M1E” category for smaller battery electric vehicles built in Europe.
The rules would apply to electric vehicles (EVs) under 4.2 metres in length that are assembled within the EU and meet local content requirements.
Manufacturers would also be eligible for potential “super-credit” incentives against fleet CO2 targets, in a move designed to encourage production of smaller, more affordable EVs in Europe.
The proposals have drawn comparisons with Japan’s kei car market, where regulatory incentives have helped support demand for compact urban vehicles. Honda N-Box is one of the most popular kei cars in the Japanese market (pictured below).
European policymakers hope similar measures could help reverse the decline of the affordable small car segment while accelerating EV adoption.
Customers calling for revival of small cars produced in Europe
Production is planned at Stellantis’ Pomigliano d’Arco plant in Italy, which currently builds the Fiat Panda.
Antonio Filosa, Stellantis chief executive, said: “The E-Car is a concept that finds its natural match in the small car success that runs deep in our European Stellantis DNA.
“Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly.
“Stellantis is answering their call with exciting new models for multiple brands.”
While Stellantis hasn’t officially confirmed which brands it will be building the E-Cars for, it already has partnerships with Leapmotor, Dongfeng and Toyota.
Stellantis said the new models would feature battery electric technology developed with selected partners to help reduce costs and accelerate time-to-market.
The OEM added that the project builds on the heritage of affordable European small cars previously produced at the Pomigliano plant.
Stellantis hit a “decisive reset” of its business earlier this year after posting a £20bn loss last year.
The company’s focus for 2026 is to “continue to close the execution gaps of the past, adding further momentum to our return to profitable growth”.
Ensure you always receive AM insights. Make us a preferred source of news on Google