Stellantis has officially confirmed plans to launch a new generation of affordable small electric vehicles aimed at the European market, with production expected to begin in 2028 at its Pomigliano plant in Italy.
The new initiative, known as the “E-Car” project, marks the automaker’s latest effort to strengthen its position in Europe’s increasingly competitive EV segment while responding to growing pressure from low-cost Chinese electric vehicle manufacturers.
According to Stellantis, the “E” in E-Car stands for European, Emotion, Electric, and Environmental friendliness. The company describes the project as a revival of Europe’s traditional small-car market, focused on practical, city-friendly electric mobility that remains accessible to a wider audience.
Antonio Filosa, CEO of Stellantis, said the project reflects the company’s deep roots in Europe’s compact car heritage.
“Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly.”
While Stellantis has not yet confirmed which of its brands will produce the upcoming E-Cars, the company stated that multiple brands will receive new models based on the platform. With 14 automotive brands under its umbrella, potential candidates could include Fiat, Jeep, and others focused on urban mobility.
Built in Italy for European Drivers
Production will take place at Stellantis’ Pomigliano d’Arco factory near Naples, a facility with a long history of building compact and affordable vehicles, including the iconic Fiat Panda.
The decision also aligns with broader European Union goals to encourage locally produced electric vehicles. The European Commission recently introduced a new category for smaller EVs built in Europe, offering more favorable regulatory treatment as automakers race toward stricter emissions targets.
Under current EU plans, 90 percent of new vehicles sold in the bloc are expected to be electric by 2035, accelerating the industry’s transition away from internal combustion engines.
Affordable EVs Become a Key Battleground
The announcement highlights a growing shift among European automakers toward lower-cost EVs as affordability becomes a critical factor for mass adoption.
Renault has already moved aggressively into the segment with models such as the Renault 5 E-Tech and the upcoming electric Twingo, while Volkswagen recently unveiled its new ID.Polo.
Stellantis says its electric cars will feature advanced battery-electric technology developed alongside selected partners to reduce costs and accelerate development timelines. The company believes the project can help revive Europe’s shrinking small-car market while supporting local manufacturing and employment.
The move comes as Stellantis continues evaluating ways to improve efficiency across its European operations, including reported discussions involving underused factory capacity in the region.
With demand for practical and affordable EVs expected to grow rapidly later this decade, Stellantis’ new E-Car project could become one of the company’s most important launches for the European market.
