Stellantis Expands Affordable EV Ambitions In Europe As Volkswagen Rivalry Heats Up

• Stellantis announces launch of its small and affordable ‘E-Car’ project across multiple brands.
• Stellantis says that the E-Car will ‘be produced in Europe for Europeans.’
• The first E-Cars are expected to roll off production at the Pomigliano plant in Naples in 2028.

Stellantis (STLA) is looking to strengthen its position in Europe’s small, affordable battery-electric vehicle (BEV) market with a new small-car initiative. The company has announced the launch of its “E-Car” project, with first production expected in 2028.

The automaker said the vehicles will be built “in Europe for Europeans,” positioning the project against rivals including Volkswagen Group, which is preparing its own low-cost lineup.

In early pre-market trading, Stellantis stock was up nearly 1%, while Stocktwits retail sentiment on the stock remains “neutral.”

Stellantis Vs Volkswagen In Europe

Stellantis currently refers to the upcoming models under the project name “E-Car.” The Fiat, Opel, and Citroen owner is targeting a segment that the Volkswagen Group is also set to enter this year with its electric small-car family centered on the VW ID. Polo.

While Stellantis is yet to disclose details, it has stated that production of electric small cars will start at the Pomigliano plant near Naples. According to Reuters report, the E-Car will have a price tag of around 15,000 euros ($17,500).

Stellantis CEO Antonio Filosa said, “Our customers are calling for a revival of small, stylish vehicles, proudly produced in Europe, which are also affordable and environmentally friendly.” Filosa added that the E-Car would come in “new models for multiple brands.”

STLA’s Partner Geography In Focus

Stellantis said the E-Car will be “small, innovative, affordable, and fully electric.” The company added that the cars will be “developed in the true tradition of European people’s mobility.”

But Stellantis did not explicitly state that the vehicles will be developed in Europe. This suggests that some project partners may be based outside Europe.

STLA Targets Higher Capacity Use In Europe

The E-Car project could help Stellantis address low-capacity utilization across its European plants, especially if production volumes scale as planned. Filosa has highlighted this as a major focus, alongside deeper cooperation with Chinese partner Leapmotor. Earlier this month, the two companies announced joint production of two models in Spain.

Stellantis has also indicated that its manufacturing partnership with Dongfeng could expand beyond China, further broadening its global production strategy.

STLA stock is down over 33% year-to-date and nearly 31% in the past 12 months.

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