The automaker Stellantis, formed as a result of the merger of Fiat Chrysler and PSA Group, announced a new project for affordable compact urban electric vehicles for the European market called E-Car.
Small but affordable
Mass production is planned to start in 2028 at the Italian plant in Pomigliano, where the Fiat Panda is currently produced, Stellantis stated.
The main idea of the project is to create a "people's" electric car for cities: small, fully electric, cheaper than current electric cars, and produced in Europe.
Such a car will cost 15,000 euros, Reuters reports citing its own sources. The new electric vehicle is intended to address the unprecedented reduction in the segment of small, affordable cars in Europe in recent years.
The European Commission will provide funding
In December 2025, under pressure from the automotive lobby, the European Commission canceled the ban on the sale of new passenger cars with diesel and gasoline engines that was planned to be introduced in 2035.
At the same time, fully electric and hydrogen vehicles will continue to be encouraged. According to the European Commission's plan, automakers will be able to receive "super credits" for producing small, affordable electric vehicles.
A new category of vehicles will be introduced under the Small Affordable Cars initiative, which covers electric vehicles up to 4.2 meters in length. For this category, the European Commission plans to secure support for up to 10 years.
How much does it cost?
According to the Brussels analytical center CEPA, the average price of European-made electric cars is currently around 50,000 euros, while their Chinese competitors are sold in the range of 30,000 to 45,000 euros.
Smaller models, such as the BYD Dolphin, are even cheaper, priced from 20,000 to 34,000 euros. Even despite the European Union imposing tariffs of up to 35%, Chinese companies have managed to absorb these costs or switch to selling hybrids to maintain their competitive advantage in the market.
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