Fiat planning cut-price electric car to take on Renault – report

A wave of cheaper electric vehicles are beginning to hit the market, and Italian car-maker Fiat wants a slice of the market.

According to an interview with news outlet Bloomberg, Olivier Francois, CEO of Stellantis – the parent company of Alfa Romeo, Citroen, Maserati, Peugeot, and Fiat, among others – says the company is working on the next generation of its popular Panda small SUV, with electric power.

"There is a real need for more affordable EVs [electric vehicles]," Mr Francois said, confirming an electric Panda is currently in development, with a target price of less than €25,000 ($AU42,000).

Fiat sold the highest number of cars of any brand in the Stellantis group in 2022 – ahead of Jeep and Ram Trucks – with the Panda being the second most popular model after the small Fiat 500 hatchback, according to a report by Motor1.

While a number of Chinese car companies are busy launching entry-level electric models, it's the Dacia Spring – an electric car produced under Renault, and one of Europe's cheapest electric cars – that Fiat appears to be targeting with its "no frills" electric Panda.

MORE: Dacia Duster and Bigster SUVs a step closer to Australia, with Renault badges

However, it's not the only affordable electric car coming from Stellantis – the merger of car-making giants Fiat-Chrysler and Peugeot-Citroen – with the Citroen e-C3 small car also set to launch in 2024.

Mr Francois said "it's very likely that there will be synergies" between the Citroen e-C3 and the electric Fiat Panda, suggesting the two models will be underpinned by the same platform – or at the very least, will share major components in an effort to drive down development costs.

With the electric Fiat Panda scheduled to make its debut in July 2024, there's no word on whether the model is being considered for Australia at this stage.

For those wanting an electric Italian city car, the Fiat 500e has gone on sale in Australia, priced from $52,500 before on-road costs.