Stellantis is reviving the kei car formula with a range of tiny electric cars starting in 2028. The company's affordable EV initiative, called E-Car, will build small electric vehicles across multiple brands.
The EU's new M1E rules could dramatically lower costs for tiny electric vehicles, making them more accessible to European buyers. This regulatory framework gives automakers more flexibility and long-term regulatory certainty compared to other types of cars.
Europe's big carmakers were built on the backs of small, ultra-affordable cars like the original Citroen 2CV and Fiat Panda. Stellantis is now ready to do it all over again with a range of tiny EVs starting in 2028.
The new project will focus on compact EVs designed specifically for European cities, shorter commutes, and buyers who've effectively been priced out of the new car market entirely. This shrinking affordability gap has become a huge issue across Europe.
Average vehicle prices have climbed dramatically in recent years, as has the average age of used cars on the road, while genuinely cheap new cars have nearly vanished. The new M1E category will help address this issue by providing more affordable options for buyers.
The proposed framework reportedly gives automakers more flexibility and long-term regulatory certainty compared with other types of cars, making the business case far less terrifying than before.
Stellantis hasn't confirmed exactly which models will arrive first, but the clues aren't subtle. The company specifically highlighted Pomigliano's history building iconic affordable cars like the Fiat Panda.
Recent reports have pointed toward a smaller, cheaper Panda inspired by the original 1980s model and designed to fit under the new Grande Panda. Citroen also appears eager to revive the spirit of its legendary 2CV with a no-nonsense electric runabout sitting beneath the C3.
The company's E-Car initiative will build small electric cars at the Pomigliano plant in Italy, home to generations of budget-friendly Fiat models over the years, and currently producing the Alfa Romeo Tonale and existing base Panda.
The new project will focus on compact EVs designed specifically for European cities.
