Stellantis is preparing to launch a new category of small, affordable electric cars as it looks to revive Europe’s shrinking entry level segment and improve production activity across its underused factories.
The new fully electric compact model, currently referred to as the E-Car, is scheduled to enter production in 2028 at the Pomigliano d’Arco plant in Italy. According to a source close to the matter, its price could be around 15,000 euros, or roughly 17,500 dollars, placing it among the most accessible EVs planned for the European market.
Through this project, Stellantis aims to offer a European built electric vehicle for European buyers, combining accessible pricing with a practical, city friendly design. CEO Antonio Filosa said the group sees strong potential in demand for small, stylish vehicles designed around daily urban mobility. The E-Car is also expected to appear in different forms across several Stellantis brands, including Fiat, Opel and Citroen, giving the company room to adapt the formula to different customers without starting from scratch each time.
The move comes after years in which many automakers moved away from affordable small cars. Higher costs linked to electrification, safety systems, and emissions rules made entry level models harder to justify financially, pushing manufacturers toward larger, more profitable vehicles. As a result, buyers looking for simple and reasonably priced new cars have seen fewer options, especially in the electric segment.
Stellantis believes Europe now needs a new generation of stripped down, cost efficient urban vehicles, inspired in part by Japan’s popular kei cars. Those compact models are designed mainly for city use and benefit from specific size and cost advantages in their home market. For Europe, the idea would be to create small electric cars that are practical, affordable, and easier to produce at scale.
The company plans to rely on partnerships to reduce development costs and speed up the project, while also supporting manufacturing jobs in Europe. If produced in strong numbers, the E-Car could help Stellantis improve capacity usage at its European plants, an important target as the group works to make better use of its industrial footprint.
Italian unions welcomed the announcement, saying the new model could eventually help the Pomigliano plant return to full employment. The factory currently builds several models, including the Fiat Panda, which is expected to remain in production until at least 2030.
