Stellantis will launch a sub‑$20k affordable electric car in Europe from 2028, reviving the small‑car market and boosting low‑cost EV adoption. Learn more.
Stellantis announced plans to roll out a brand‑new electric city car priced at roughly €15,000 (about $17,400) starting in 2028. The move is aimed at reviving Europe’s dwindling market for low‑cost small cars and making electric mobility accessible to a broader audience.
Why an affordable electric car matters in Europe
The continent’s budget‑friendly car segment has been shrinking as manufacturers grapple with rising electrification costs and stricter safety regulations. Without inexpensive EV options, the European Union’s goal of a zero‑emission transport fleet could stall, especially among low‑income households.
Production details and job impact
The new model, dubbed the “E‑Car,” will be built at Stellantis’ Pomigliano d’Arco plant in Italy – the same facility that assembles Fiat, Opel and Citroën models. By leveraging existing production lines, the company expects high volumes that can help fill idle capacity and safeguard local jobs.
Design philosophy – compact, stylish, and tax‑friendly
Inspired by Japan’s kei‑car concept, the E‑Car will be a compact, fashion‑forward hatchback designed specifically for European city streets. Its small footprint could qualify for favorable tax and insurance rates, echoing the success of ultra‑small cars in Asian markets.
Cost‑saving strategy through partnerships
To keep the price under €15,000, Stellantis plans to tap into external collaborations. Recent agreements with Chinese EV maker Leapmotor will boost production efficiency, while a partnership with Dongfeng could open additional supply channels beyond China.
Regulatory hurdles and added expenses
Even with a low price tag, the E‑Car must meet EU‑wide safety standards. Features such as driver‑drowsiness sensors and an SOS emergency button add to the bill of materials, presenting a challenge for a vehicle whose primary purpose is short‑range urban travel.
- Target price: ~€15,000 (≈ $17,400)
- Launch year: 2028
- Manufacturing site: Pomigliano d’Arco, Italy
- Platform shared across Stellantis brands
- Key partners: Leapmotor, Dongfeng
Stellantis believes that introducing an affordable electric car in Europe will not only revive the small‑car segment but also accelerate the continent’s transition to zero‑emission mobility.