Peugeot eyes 108 comeback as EU E-Car city-car class nears
Peugeot considers 108 return as EU E-Car category nears
Peugeot eyes 108 comeback as EU E-Car city-car class nears
Peugeot may revive the 108 as the EU readies an E-Car category, a kei-style class easing safety rules to make A-segment city cars viable for Stellantis.
2025-12-01T19:43:33+03:00
2025-12-01T19:43:33+03:00
2025-12-01T19:43:33+03:00
Europe may be on the verge of a fresh revival for its tiniest, most affordable cars. The European Commission is preparing to launch an E-Car category—essentially a European counterpart to Japan’s kei cars with more relaxed active-safety requirements. The goal is to help local manufacturers make small city cars profitable again. If Brussels follows through, the smallest class could finally get some breathing room.Against this backdrop, Peugeot has officially acknowledged it is considering bringing the 108 back to its lineup. CEO Alain Favey noted that the brand has sold more than a million A-segment cars—the 106, 107, and 108—and is ready to reenter the niche if the rules truly lower development costs.Today, the 208 remains Peugeot’s most compact model, while the A-segment has all but vanished: meeting M1 requirements just doesn’t add up on the cost side. Stellantis therefore hopes the new category would allow it to drop some pricey driver-assistance and safety systems that make ultra-cheap models economically impossible. That’s the lever that matters: trim a few high-cost features, and the business case starts to look viable.If the project is approved, the future 108 would almost certainly be a joint effort with Citroën and FIAT—within the group, those badges focus on city cars. Peugeot, however, will decide only after the final regulation is published; for now, the company reiterates that under current rules, mini cars simply don’t pay off. Pooling development across brands would be the sensible way to keep costs in check.
Peugeot 108, EU E-Car category, A-segment city cars, kei cars, Stellantis, Citroën, FIAT, European Commission, active safety rules, driver-assistance, city-car revival, small car profitability
2025
Michael Powers
news
Peugeot considers 108 return as EU E-Car category nears
Peugeot may revive the 108 as the EU readies an E-Car category, a kei-style class easing safety rules to make A-segment city cars viable for Stellantis.
Michael Powers, Editor
Europe may be on the verge of a fresh revival for its tiniest, most affordable cars. The European Commission is preparing to launch an E-Car category—essentially a European counterpart to Japan’s kei cars with more relaxed active-safety requirements. The goal is to help local manufacturers make small city cars profitable again. If Brussels follows through, the smallest class could finally get some breathing room.
Against this backdrop, Peugeot has officially acknowledged it is considering bringing the 108 back to its lineup. CEO Alain Favey noted that the brand has sold more than a million A-segment cars—the 106, 107, and 108—and is ready to reenter the niche if the rules truly lower development costs.
Today, the 208 remains Peugeot’s most compact model, while the A-segment has all but vanished: meeting M1 requirements just doesn’t add up on the cost side. Stellantis therefore hopes the new category would allow it to drop some pricey driver-assistance and safety systems that make ultra-cheap models economically impossible. That’s the lever that matters: trim a few high-cost features, and the business case starts to look viable.
If the project is approved, the future 108 would almost certainly be a joint effort with Citroën and FIAT—within the group, those badges focus on city cars. Peugeot, however, will decide only after the final regulation is published; for now, the company reiterates that under current rules, mini cars simply don’t pay off. Pooling development across brands would be the sensible way to keep costs in check.
