Lancia hot hatch revival confirmed in new electric-car plans, a chance for Australia

Iconic Italian car maker and former World Rally Championship hero Lancia is poised to return to high-performance cars, as part of a plan to revitalise the ailing brand with a new range of hybrid and electric vehicles.

Although Lancia cars will initially be sold only in seven European countries, the company has left the door open for an eventual return to Australia for the first time since 1985.

"If things go well, why not try to bring (Lancia models with) right-hand drive also in Japan, South Africa or Australia," Mr Napolitano told Automotive News Europe in 2021.

The first new Lancia model in more than a decade will be the new Ypsilon, a hybrid or electric city hatch due next year similar in size to a Toyota Yaris – to replace the current model on sale since 2011 and based on old Fiat 500 underpinnings.

The Italian car maker has now confirmed a high-performance version of the Ypsilon hatch is due in 2025, reviving the iconic HF (or High Fidelity) badge applied to hot Lancias through the 1960s, 1970s and 1980s.

It is unclear if it will use hybrid or electric power, though the latter appears more likely as the hybrid Ypsilon will have a short lifespan of four years, as Lancia is due to go electric-only from 2028.

The Ypsilon HF will be the latest entrant in the pint-sized hot hatch class, currently occupied by the Ford Fiesta ST, Hyundai i20 N, Volkswagen Polo GTI, and Suzuki Swift Sport – and the now discontinued Renault Clio RS and Peugeot 208 GTi.

It would join a fleet of upcoming electric entrants into this category, including the Abarth 500e, Renault's Alpine 5, Volkswagen ID.2 GTI, Cupra UrbanRebel, and a future electric Mini JCW.

Lancia has confirmed the Ypsilon HF will produce 179kW – about 30kW more than a Fiesta ST or i20 N – which could yield a 0-100km/h acceleration time close to six seconds.

"In 2025 there will also be the HF version [of the Ypsilon] ... It will be four centimetres wider, it will be lower," Lancia CEO Luca Napolitano told a media presentation earlier this week.

The new Ypsilon donor car underpinning the HF version is said to measure four metres long – in line with its city-car rivals – and is due in European showrooms in early 2024.

The current model is a twin under the skin to the petrol Fiat 500 launched more than 15 years ago, though the new model is likely to adopt newer underpinnings shared with other brands within the Stellantis car giant's global empire, including Peugeot, Citroen, Opel and Alfa Romeo.

Lancia has previewed the styling of the new Ypsilon – and its other future vehicles – with the Pu+Ra HPE two-door coupe concept car.

Highlights set to feature on future production Lancias include three LED front light strips claimed to be a "reinterpretation" of the company's T-shaped front grille trim, and circular LED tail-lights inspired by the 1970s Stratos sports coupe.

The lines on the rear window are reportedly inspired by the Beta HPE two-door of the 1970s, while the 'HPE' in the concept's name means High Performance Electric, a nod to the Beta's High Performance Estate designation.

Lancia claims the concept car is capable of 700km of driving range, a "charging time" of "just over 10 minutes", and energy consumption of less than 10kWh per 100 kilometres – thanks to parts borrowed from the new electric Ypsilon hatch.

Due to follow the Ypsilon into showrooms will be a large Tesla Model 3-sized sedan with electric power only, badged Gamma – reviving another 1970s and 1980s Lancia nameplate..

"It's almost 4.7 meters long, electric only. It's a stunning sportback [Kia Stinger-like sedan with a lift-up tailgate] ... the Italian market will be very important but ... 50 per cent of volumes [will be] outside Italy," Mr Napolitano said.

Scheduled for 2028 is a revival of the Delta small car, most famously seen on a box-styled five-door hatchback introduced in 1979 – though in production in various forms until 2014.

The original Delta was known for its range of high-performance versions, initially wearing HF badges, but later debuting the iconic 'Integrale' badge, with turbocharged four-cylinder engines and all-wheel drive.

It is with these Delta variants that Lancia notched up six of its 10 World Rally Championship (WRC) manufacturer titles – in a row from 1987 to 1992 – and saw the Delta tie with the Subaru Impreza as the most successful WRC car of all time.

The Delta will be offered with electric power only, as with all Lancia vehicles from 2028 – when the hybrid Ypsilon will be discontinued.

Lancia has indicated the Gamma and Delta will be underpinned by the Stellantis giant's STLA Medium architecture, which will allow a choice of

The revitalised Lancia brand will be positioned as one of the Stellantis group's "premium" brands – alongside Alfa Romeo, and DS Automobiles, the luxury division of Peugeot.

Italy is currently the only market in which Lancia cars are sold, but the new Ypsilon will lead a return to the rest of Europe, starting with Germany, France, Spain, Portugal, Belgium and the Netherlands.

Lancia has not sold vehicles in Australia since 1985, however, based on previous comments from senior executives, the company could eventually return with its full range of electric cars after it establishes a foothold in Europe.