Stellantis NV will start sales of an affordable electric car priced at less than €25,000 ($27,330) early next year, targeting mass-market customers who may otherwise turn to cheaper vehicles from China.
(Bloomberg) — Stellantis NV will start sales of an affordable electric car priced at less than €25,000 ($27,330) early next year, targeting mass-market customers who may otherwise turn to cheaper vehicles from China.
Citroen, one of the carmaker’s 14 brands alongside Jeep and Fiat, will make the e-C3 city car in Slovakia to compete with the Dacia Spring that’s made in China and Renault SA’s upcoming Renault 5 EV.
The e-C3 will have a driving range of more than 300 kilometers (186 miles) on a single charge.
“Citroen has a history of making affordable cars and it’s role now is to make electric mobility accessible to all,” brand head Thierry Koskas said.
“There is no equivalent to this car today.”
European carmakers are struggling to come up with affordable EVs that generate a sufficient return because of high battery costs. Aggressive price cuts by US rival Tesla Inc.
are adding to the pressure while Chinese brands are preparing to push deeper into the European market.
Read more: Stellantis May Shut More Plants as Electrification Costs Bite
Stellantis Chief Executive Officer Carlos Tavares has warned of plant closures because of the cost of electrification and the push to make affordable EVs for the middle classes.
Volkswagen AG in March unveiled an electric vehicle concept designed to also cost less than €25,000, but the vehicle is a couple years away from production.
Stellantis rival Renault plans to introduce a ‘made in France’ all-electric Renault 5 next year, though the company hasn’t so far revealed its price tag.
Read more: Citroen to Make Lineup More Affordable as Consumers Feel Pinch
Planning around the new e-C3 started under the previous Citroen CEO, Vincent Cobee, who left Stellantis this year.
Citroen is targeting global sals of 1 million, up from 685,732 last year.
It’s aiming for 5% market share in Europe, which it could reach as soon as the second half of this year, up from 3.7% last year, the new CEO said.
The brand also will keep on growing in Middle East, Africa, India and Latin America, he said.
Read more: Renault Working on More Affordable EV as CEO Touts Japan Kei Car
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