Stellantis unveils low-cost electric cars in bid to revive European sales

Stellantis (STLA) is betting on affordable electric vehicles and a wave of new models to reverse declining sales and market share in Europe, where Chinese competitors are gaining ground, Reuters reported.

Chief Executive Antonio Filosa unveiled six concept vehicles Sunday ahead of the Paris Motor Show, highlighting the automaker's efforts to revive its brands and attract budget-conscious buyers.

The centerpiece is Citroen's revival of the classic 2CV as a low-cost electric vehicle expected to enter production in Europe in 2028. The model will be among the first developed for Europe's proposed "e-car" category, which targets prices around €15,000 ($16,800).

Other vehicles making their international debuts include the DS7, Fiat Grizzly, Lancia Gamma, Opel Corsa GSE and two models from Chinese partner Leapmotor.

The launches are part of a turnaround strategy Filosa outlined in May that calls for dozens of new models through 2030, lower costs and closer cooperation with Chinese manufacturers.

Stellantis is also seeking to give its brands more distinctive designs as automakers increasingly share vehicle platforms and technology.

The company's recovery remains uncertain. Its shares recently fell to €3.81, their lowest level since Stellantis was formed in 2021, amid concerns about weak profitability and declining market share in Europe and North America.

Bernstein analysts downgraded the stock to Underperform in August, questioning whether recent sales improvements reflected stronger consumer demand or increased shipments to dealerships.

Industry analysts say the revived 2CV could provide an important test of whether European automakers can produce inexpensive electric vehicles without compromising quality or safety.

For Stellantis (STLA), the challenge is turning an ambitious product offensive into sustainable sales growth while defending its European market position against increasingly competitive Chinese brands.