Stellantis to build Europe-bound cheap, small electric cars from 2028

Automotive giant plans to introduce a range of affordable electric city cars for Europe in the next few years...

Citroen 2CV EV rendering

Stellantis, the company that owns brands such as Citroën and Vauxhall, has confirmed plans to launch a line of small, affordable electric city cars from 2028.

Dubbed the E-Car project, the cars will be designed for and built in Europe, and will be developed in line with the European Commission’s framework for a new class of EV inspired by Japan’s kei cars, called M1E. These cars are subject to restrictions surrounding their size – they can’t be more than 4.2m in length – plus they must be built in the EU and will be eligible for ‘super-credits’ against manufacturers’ EU-set CO2 targets.

Exact technical requirements for the M1E category have yet to be confirmed, but in its statement confirming the E-Car project, Stellantis called M1E a “high-potential segment” which could boost European design and manufacturing jobs while encouraging the uptake of electric vehicles across the continent.

Like the kei cars of Japan, M1E-category cars are likely to be restricted not just in size, but also in power output to keep costs low. With a maximum length of 4.2m, they are set to be larger than kei cars, with models like the Renault 5 (3.9m) and upcoming Volkswagen ID Polo (4.1m) meeting the size requirements.

Fiat Centoventi concept

Stellantis’s E-Car models will be manufactured at its plant in Pomigliano, Italy, where the Fiat Panda is manufactured – though that car went off sale in the UK in 2024. However, it's tipped that an electrified version of the Panda is one of the M1E models Stellantis is planning to bring to Europe, as well as a reborn version of the Citroën 2CV. That car has been imagined in our AI-assisted artist rendering at the top of this story.

The Pomigliano location also has the capability of facilitating large production volumes for the new E-Car project.

It’s expected that Stellantis will unveil more details about its E-Car project at its annual investor presentation on Thursday (21 May). As part of the build up to this event, the company has also announced a deal with Chinese firm Dongfeng to build and sell cars from its premium Voyah brand in Europe – similar to the relationship Stellantis has with Leapmotor.


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