Stellantis plans to offer its upcoming family of small vehicles exclusively with battery-electric powertrains, marking a notable departure from the group’s long-standing strategy of providing multiple propulsion options across most of its model lineup.
The move applies to the company’s new E-Car project, a range of compact vehicles being developed for the European market and inspired by the revival of Citroën’s iconic 2CV.
Shift Away From Multi-Energy Strategy
Stellantis has traditionally pursued a multi-energy approach, offering customers a choice of battery-electric, hybrid, and internal combustion engine powertrains depending on the model and market.
Earlier this year, when announcing significant write-downs related to its electric vehicle business, CEO Antonio Filosa reaffirmed the group’s commitment to maintaining a broad portfolio of propulsion technologies.
Filosa said Stellantis aimed to remain a “beacon of freedom of choice” for customers, particularly those whose needs continue to favor hybrid or advanced combustion-engine vehicles.
Despite that broader strategy, the automaker has decided to take a different approach in the small-car segment.
New Small Cars to Be Battery-Electric Only
Speaking at the Automotive News Europe Congress in Brussels, Emanuele Cappellano, Head of Stellantis Enlarged Europe, confirmed that the upcoming E-Car family will be offered exclusively as battery-electric vehicles.
The decision means Stellantis will not develop hybrid or combustion-engine variants for the new small-car range, focusing instead on fully electric drivetrains.
The vehicles are expected to target urban mobility and entry-level electric vehicle buyers in Europe.
Citroën 2CV Revival Takes Shape
Speculation surrounding a modern electric interpretation of the Citroën 2CV has intensified in recent months.
Following the announcement of the E-Car project, Stellantis officially confirmed in May that a new version of the 2CV is under development.
Citroën CEO Xavier Chardon described the project as a modern effort to make electric mobility more accessible.
“Just like the original once democratized mobility, the new 2 CV will re-enchant electric mobility for a new generation through a highly desirable model. The return of the 2 CV is not simply the return of a legendary name. It is the return of a bold and optimistic idea of progress. A profoundly Citroën idea.”
The original Citroën 2CV became one of Europe’s most recognizable affordable vehicles, and Stellantis appears to be positioning its successor as a similarly accessible electric alternative.
Regulations and Costs Influence Strategy
Several factors are likely influencing Stellantis’ decision to focus solely on battery-electric models in the segment.
One challenge is the increasing cost of adapting small internal combustion engine vehicles to comply with future European emissions regulations. Industry observers have noted that the economics of developing new small ICE vehicles have become increasingly difficult as regulatory requirements tighten.
Volkswagen has cited similar reasons for replacing the combustion-powered Polo with the upcoming battery-electric ID. Polo.
EU Incentives Support Small Electric Cars
Stellantis could also benefit from upcoming European Union regulations designed to encourage the development of compact electric vehicles.
Under the European Commission’s Automotive Package, a new vehicle category known as M1E is expected to be introduced from December 2025 for electric cars measuring less than 4.2 metres in length.
Vehicles within this category would receive a weighting factor of 1.3 when manufacturers calculate fleet-average CO₂ emissions, effectively granting a form of “super credit” for qualifying models.
The measure is intended to encourage automakers to bring more affordable small electric vehicles to market while helping offset emissions from larger combustion-engine vehicles within their fleets.
As European regulators push for lower emissions and automakers seek cost-effective compliance strategies, compact battery-electric vehicles are expected to play an increasingly important role in future product portfolios.
Source: Automobilwoche