Stellantis Plans Affordable Italian EVs for 2028 Launch

Yahoo Autos reported Thursday that Stellantis will produce a new family of small, affordable EVs at its Pomigliano plant near Naples starting in 2028. The automaker is positioning the project as a direct response to mounting pressure from lower-cost Chinese brands and Volkswagen’s forthcoming compact EV lineup.

Stellantis Affordable EV Project Takes Shape

The initiative, internally labeled the “E-Car” project, will span multiple Stellantis brands. The company has described the vehicles as small, innovative, fully electric, and affordable. No model names, battery specifications, or pricing have been disclosed yet. Stellantis said the cars will incorporate what it calls “world-class BEV technologies” and will rely on select external partners to cut costs and compress development timelines.

CEO Antonio Filosa told reporters that customers are demanding small, stylish vehicles that are both environmentally friendly and affordable, and that the company intends to deliver. The multi-brand structure of the project is intended to spread development costs across higher production volumes, improving the economics of each individual model.

Also Read: Tesla Price Cuts Reignite EV Affordability Debate

Why the Pomigliano Plant Matters

The Pomigliano facility currently manufactures the Fiat Panda and Alfa Romeo Tonale but has not yet begun EV production. Selecting the site signals a deliberate effort to tie the new lineup to European manufacturing. That matters because emerging EU regulations may link EV subsidy eligibility to locally sourced components and regional production. Stellantis explicitly framed the project as producing vehicles “in Europe, for Europeans.”

Also Read: EU Weighs Stricter Rules on EV Subsidies and Local Content

A Shrinking Segment Drives Urgency

Stellantis itself acknowledged the backdrop, pointing to an “unprecedented contraction” in the affordable small-car segment across Europe. That squeeze has left a gap that Chinese automakers have been moving to fill, raising the competitive stakes considerably. European manufacturers face a dual challenge of meeting tightening emissions standards while matching the aggressive pricing that Chinese rivals have used to gain ground in Western markets.

The broader consumer benefit could be significant. Upfront cost remains the single largest obstacle for buyers considering an EV. A competitively priced small electric car suited to urban European driving would expand access meaningfully for middle-income households.

Stellantis is expected to outline its wider strategic direction when it holds an Investor Day later this month.

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