Stellantis NV (NYSE:STLA) has announced that it plans to add a second affordable, no-frills, battery-electric vehicle to its Fiat brand lineup to compete with Renault (EPA:RENA) and Chinese automakers.
According to Fiat brand CEO Olivier Francois, the new EV, inspired by the Fiat Panda, will carry a price tag of less than $27,500, and will be unveiled in July of 2024.
"There is a real need for more affordable EVs," Francois said.
Stellantis also plans to start selling a full-electric city car (the e-C3) from its French brand Citroen priced below €25,000 (€1 = $1.1002) early next year. To keep costs down, and better compete with Renault’s Dacia Spring model, the e-C3 will be built in Slovakia.
The plan comes as automakers struggle to keep their mass-market customers, whose purchasing power has been eroded by inflation. Furthermore, the entry of Chinese brands into the European market intensifies the need to provide cost-effective electric vehicles.
Earlier this year, Fiat revealed its plans to reintroduce the electric 500 to the United States in Q1 2024, as the U.S. represents Stellantis' most significant and lucrative market.
Shares of STLA are up 0.54% in afternoon trading on Monday.