Stellantis, the world's number three carmaker, will unveil its first affordable European-made electric car in mid-October, the new Citroën e-C3, as it gears up to counter the arrival of lower-cost Chinese brands in the European market.
Electric vehicles (EVs) are more expensive than their fossil-fuel counterparts and European carmakers plan cheaper models encouraged by government subsidies.
France, for example, plans a subsidy for EVs produced in Europe as they would have a lower carbon footprint than imported models, and a social leasing programme offering EVs for about €100 (about R2,000) a month to poorer households.
That EV subsidy should be unveiled in October for cars to be delivered in 2024, a government source said.
The need for more affordable European models has been driven by Chinese EV brands, which are seen as a threat to European carmakers as they can offer cheaper models.
So far, Chinese carmakers have focused on larger EVs, but are expected to bring smaller, cheaper models to Europe as they expand their presence.
On the French market, the most affordable electric models available today are the Chinese-made Renault Dacia Spring and the electric Renault Twingo, which are priced at €21,000 (about R420,000) and €25,000 (about R500,000) respectively. The Twingo will cease production in mid-2024.
The new e-C3, a city car larger than these two models, is a timely addition to the market as it will sell for less than €25,000, said Citroën CEO Thierry Koskas.
"Today there is no equivalent on the market," he said, adding the car "could be a good candidate (...) to respond to the government's request to provide social leasing".
Built on Stellantis' "smart-car" architecture introduced in India and Latin America, the vehicle will be assembled in Slovakia and will launch early in 2024, Koskas said.
The e-C3's battery will provide a range of 300km and is likely to be made in China, according to three sources familiar with the matter.
As the battery represents a substantial part of an EV's value, Stellantis is hoping for an exemption to the rules to qualify for a French government subsidy, one source said.
The proposed scheme is aimed at vehicles assembled in Europe, on the grounds that their manufacturing produces less CO2. That an important part of the Citroën car will be made in China raises a question mark about whether it can be covered by the subsidies.
Stellantis declined to comment.
New Citroën e-C3 will be the first affordable European-made EV
Image: Supplied
Stellantis, the world's number three carmaker, will unveil its first affordable European-made electric car in mid-October, the new Citroën e-C3, as it gears up to counter the arrival of lower-cost Chinese brands in the European market.
Electric vehicles (EVs) are more expensive than their fossil-fuel counterparts and European carmakers plan cheaper models encouraged by government subsidies.
France, for example, plans a subsidy for EVs produced in Europe as they would have a lower carbon footprint than imported models, and a social leasing programme offering EVs for about €100 (about R2,000) a month to poorer households.
That EV subsidy should be unveiled in October for cars to be delivered in 2024, a government source said.
The need for more affordable European models has been driven by Chinese EV brands, which are seen as a threat to European carmakers as they can offer cheaper models.
So far, Chinese carmakers have focused on larger EVs, but are expected to bring smaller, cheaper models to Europe as they expand their presence.
On the French market, the most affordable electric models available today are the Chinese-made Renault Dacia Spring and the electric Renault Twingo, which are priced at €21,000 (about R420,000) and €25,000 (about R500,000) respectively. The Twingo will cease production in mid-2024.
The new e-C3, a city car larger than these two models, is a timely addition to the market as it will sell for less than €25,000, said Citroën CEO Thierry Koskas.
"Today there is no equivalent on the market," he said, adding the car "could be a good candidate (...) to respond to the government's request to provide social leasing".
Built on Stellantis' "smart-car" architecture introduced in India and Latin America, the vehicle will be assembled in Slovakia and will launch early in 2024, Koskas said.
The e-C3's battery will provide a range of 300km and is likely to be made in China, according to three sources familiar with the matter.
As the battery represents a substantial part of an EV's value, Stellantis is hoping for an exemption to the rules to qualify for a French government subsidy, one source said.
The proposed scheme is aimed at vehicles assembled in Europe, on the grounds that their manufacturing produces less CO2. That an important part of the Citroën car will be made in China raises a question mark about whether it can be covered by the subsidies.
Stellantis declined to comment.
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