Fiat lines up major 500e update to bring its city EV back into the fight
Fiat prepares a major 500e update with cheaper LFP batteries
Fiat lines up major 500e update to bring its city EV back into the fight
Fiat is preparing a major update for the 500e in 2027, switching to CATL-supplied LFP batteries built in Spain to cut the price to about €20,000 before subsidies.
2026-04-22T07:51:02+03:00
2026-04-22T07:51:02+03:00
2026-04-22T07:51:02+03:00
FIAT is preparing a serious update for the 500e, aimed at restoring the electric city car’s competitiveness. As early as 2027, the compact EV is set to adopt new CATL LFP batteries built in Spain, a move expected to bring the price down to around €20,000 before subsidies. It is a direct response to falling sales and tougher competition in the urban EV segment.FIAT 500e set for an overhaul after demand cooledLaunched in 2020 as a fully electric model, the FIAT 500e was for a time one of Europe’s most popular EVs. But as more affordable and more advanced rivals arrived, its position began to weaken.To help keep its Turin plant busy, Stellantis even brought back a petrol version — the FIAT 500 Hybrid with a 1.0-litre 65 hp engine. But its figures, including 0-100 km/h in 16.2 seconds and emissions of 117 g/km of CO₂, fell short of market expectations.New CATL batteries are key to the lower priceThe main change is the switch to LFP batteries, which are cheaper to produce than conventional lithium-ion packs. They will be made at CATL’s Zaragoza gigafactory, which is scheduled to start operations at the end of 2026.Former Stellantis chief Carlos Tavares had previously stressed that the investment was aimed at “making the model more accessible and widening its customer base”. In other words, the strategy is shifting from a niche EV to a mass-market product.Current specs and the pressure from rivalsToday, the FIAT 500e is offered in two versions: an entry-level model with 95 hp and a 21.3 kWh battery for up to 190 km of range, and a higher-spec version with 118 hp and a 37.3 kWh battery for up to 326 km.Prices currently start at €24,450, which no longer allows it to compete effectively with new budget EVs. After the update, the model is expected to land at around €20,000 and go head-to-head with newcomers such as the Renault Twingo.FIAT is effectively acknowledging that the EV market has entered a new phase, one in which price is becoming the decisive factor. The move to LFP batteries could prove a turning point for the 500e: if the cost reduction holds, the model may have a real chance of returning to the mainstream end of Europe’s electric-car market.
Fiat 500e, Fiat, CATL, LFP battery, electric city car, EV price cut, Zaragoza gigafactory, Stellantis, urban EV, Renault Twingo
2026
Michael Powers
news
Fiat prepares a major 500e update with cheaper LFP batteries
Fiat is preparing a major update for the 500e in 2027, switching to CATL-supplied LFP batteries built in Spain to cut the price to about €20,000 before subsidies.
Michael Powers, Editor
FIAT is preparing a serious update for the 500e, aimed at restoring the electric city car’s competitiveness. As early as 2027, the compact EV is set to adopt new CATL LFP batteries built in Spain, a move expected to bring the price down to around €20,000 before subsidies. It is a direct response to falling sales and tougher competition in the urban EV segment.
FIAT 500e set for an overhaul after demand cooled
Launched in 2020 as a fully electric model, the FIAT 500e was for a time one of Europe’s most popular EVs. But as more affordable and more advanced rivals arrived, its position began to weaken.
To help keep its Turin plant busy, Stellantis even brought back a petrol version — the FIAT 500 Hybrid with a 1.0-litre 65 hp engine. But its figures, including 0-100 km/h in 16.2 seconds and emissions of 117 g/km of CO₂, fell short of market expectations.
New CATL batteries are key to the lower price
The main change is the switch to LFP batteries, which are cheaper to produce than conventional lithium-ion packs. They will be made at CATL’s Zaragoza gigafactory, which is scheduled to start operations at the end of 2026.
Former Stellantis chief Carlos Tavares had previously stressed that the investment was aimed at “making the model more accessible and widening its customer base”. In other words, the strategy is shifting from a niche EV to a mass-market product.
Current specs and the pressure from rivals
Today, the FIAT 500e is offered in two versions: an entry-level model with 95 hp and a 21.3 kWh battery for up to 190 km of range, and a higher-spec version with 118 hp and a 37.3 kWh battery for up to 326 km.
Prices currently start at €24,450, which no longer allows it to compete effectively with new budget EVs. After the update, the model is expected to land at around €20,000 and go head-to-head with newcomers such as the Renault Twingo.
FIAT is effectively acknowledging that the EV market has entered a new phase, one in which price is becoming the decisive factor. The move to LFP batteries could prove a turning point for the 500e: if the cost reduction holds, the model may have a real chance of returning to the mainstream end of Europe’s electric-car market.
