Europe wants its cheap people's EV back — and Stellantis is taking the wheel

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Stellantis is preparing a new line of small, affordable electric cars for Europe. Production is set to begin in 2028 at the Pomigliano plant in Italy, which currently builds the Fiat Panda and Alfa Romeo Tonale.

The project is tied to a new European e-car format. The European Commission wants to carve out a dedicated M1E category for electric vehicles shorter than 4.2 m, built in Europe and aimed at a price below €25,000. For manufacturers, these cars will earn «super-credits» under CO₂ rules — each M1E sold will count as 1.3 vehicles when averaging fleet emissions. The point is simple: make cheap urban EVs commercially viable again.

Stellantis CEO Antonio Filosa says Europe’s core problem is the disappearance of affordable cars. In his words, «there are no cars under €15,000 anymore». For buyers the logic is straightforward: the market has shifted to pricey crossovers and large EVs, while a sensible city car at a sane price has become a rarity.

Stellantis isn’t naming specific models yet, but likely candidates include an entry-level electric Fiat Panda and a compact Citroen in the spirit of the 2CV. Fiat is already weighing a car positioned below the Grande Panda, closer in concept to the original 1980s Panda. Citroen, too, wants to give buyers back some «purchasing power» — roughly the way the 2CV once did in France.

The Pomigliano plant wasn’t picked by accident: it can build nearly 300,000 cars a year and has a long history of high-volume affordable models. For Stellantis, this is a chance not just to add another EV, but to plug a gap in the segment that has kept many Europeans driving older cars for longer.

The real question is whether it will turn out to be a genuinely affordable electric car — not simply «the cheapest of the expensive ones». Europe isn’t waiting for yet another premium battery hatchback, but for a car you can actually buy without feeling like it’s a financial feat.