Stellantis NV will begin selling an affordable electric car for less than €25,000 ($27,330) early next year, targeting mass-market buyers who might otherwise choose for cheaper Chinese vehicles. Citroen, one of the carmaker’s 14 brands, will produce the e-C3 city car in Slovakia to compete with the Chinese-made Dacia Spring and Renault SA’s planned Renault 5 EV. On a single charge, the e-C3 will have a driving range of more than 300 kilometres (186 miles).
Due to high battery prices, European automakers are having difficulty developing inexpensive EVs that produce a significant return. While Chinese firms are getting ready to expand further into the European market, aggressive price cuts by US rival Tesla Inc. are increasing the pressure.
Carlos Tavares, the chief executive officer of Stellantis, has issued a warning about plant closures due to the high cost of electrification and the drive to produce affordable EVs for middle-class consumers.
Volkswagen AG introduced an electric vehicle prototype in March that is similarly expected to cost less than €25,000, although production is still several years away. Stellantis competitor Renault intends to launch an all-electric Renault 5’made in France’ next year, though the price has yet to be revealed.
The previous Citroen CEO, Vincent Cobee, who left Stellantis this year, began planning for the new e-C3. Citroen is aiming for a million global sales, up from 685,732 last year. It aims for a 5% market share in Europe, which it may achieve as early as the second half of this year, up from 3.7% last year, according to the new CEO. According to him, Stellantis would continue to expand in the Middle East, Africa, India, and Latin America.
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