Jeep’s parent company, Stellantis, announced plans to launch a “groundbreaking” small and affordable electric vehicle that will reportedly start at under $18,000.
Stellantis bets on affordable EVs with new E-Car project
Stellantis is joining the race to launch a fully electric entry-level car in Europe to compete with BYD and other low-cost EV brands.
The company revealed its new E-Car project, which stands for European, Emotional, Electric, and Environmental friendliness.
“Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly,” Stellantis CEO Antonio Filosa said on Tuesday.
The “groundbreaking, small and affordable E-Car” will be built at Stellantis Pomigliano, Italy plant, starting in 2028. In a statement, the company said the new entry-level EVs have the potential for “significant production volumes” with advanced new tech developed through partnerships to boost affordability.
Stellantis expanded its collaboration with China’s Leapmotor last month to produce several new EVs in Europe. It also announced plans to produce two new Peugeot and two Jeep-branded new-energy vehicles in China, to be sold overseas starting in 2027.
Stellantis didn’t reveal prices or any further details, but a source close to the matter told Reuters the new EV will start at around 15,000 euros ($17,500).
The new low-cost EV can help boost European manufacturing jobs while supporting the adoption of fully electric vehicles in the region, the company said.
Stellantis currently builds the Fiat Panda at the Pomigliano plant. The new E-Cars should help the plant eventually reach full employment.
The news comes after BYD’s executive vice president, Stella Li, told Bloomberg during an interview at the Financial Times Future of the Car conference in London last month that the company was in talks with Stellantis to take over underutilized plants in Europe.
“We are talking to not only Stellantis, we’re talking to other companies too,” Li explained, acknowledging that demand for EVs has risen due to higher gas and oil prices.
For those in the US, don’t get too excited. Stellantis said it will take a €22.3 billion ($26 billion) hit after canceling several new electric vehicles and drastically scaling back its EV plans.
Electrek’s Take
While Stellantis expects the first E-Car model to roll off the production line in 2028, several OEMs are already releasing smaller, lower-cost EVs in Europe. Volkswagen opened orders for the ID. Polo last month, the first from its new entry-level EV lineup, starting at 33,795 euros ($40,000). The base ID. Polo will follow this summer, starting at 24,995 euros ($29,000).
Volkswagen will follow it up with the production version of the ID. EVERY1 concept car next year, an entry-level EV that will start at around 20,000 euros ($23,000).
Meanwhile, Chinese automakers, like BYD, are rapidly gaining market share in the UK and parts of Europe. BYD became the best-selling EV brand in the UK through April, led by low-cost models like the Dolphin Surf, starting at £18,675 ($25,000).
Can Stellantis compete with BYD, Volkswagen, and others in Europe’s entry-level EV market? Or, even better, can it bring one to the US? We’ll keep dreaming.
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