This article first appeared on GuruFocus.
Stellantis (STLA, Financials) announced a new small electric vehicle project as the automaker looks to strengthen its position in Europe’s affordable EV market.
The company said the first vehicles from the E-Car project are expected to begin production in Italy in 2028.
Stellantis said the E in E-Car stands for European, emotion, electric and environmental friendliness. The project is aimed at a segment where automakers are under pressure to offer lower-cost electric models as consumers weigh price, range and charging access.
The move comes as European carmakers face growing competition from Chinese EV manufacturers, which have been expanding with lower-priced electric vehicles.
For Stellantis, the project could help protect market share while supporting its broader electrification strategy.
Investors will likely watch for details on pricing, production volumes and how the new model fits into Stellantis’ long-term EV plans.