Stellantis relaunched Lancia with the electric Ypsilon to sell outside Italy again

By 2024 Lancia, founded in 1907 and part of Stellantis, had shrunk to a single small car sold only in Italy. The 117-year-old name was a shadow of the icon that once dominated Italian rallying, and Stellantis had to decide whether to kill it or spend to bring it back.

Stellantis chose to revive it. In Milan in February 2024 the brand revealed the new Ypsilon, a battery-electric compact with a 51 kWh battery and up to 403 km of range, priced at 39,500 euros for the limited Cassina-signed launch series of 1,906 units. Brand CEO Luca Napolitano said Lancia was targeting the clients of the Audi A1 and Mini, signalling an upmarket move rather than a cheap comeback.

The relaunch was explicitly staged: the Ypsilon would go on sale in Italy before summer, then roll into Belgium and the Netherlands in mid-2024, France and Spain after, Germany in 2025. It was built in Zaragoza, Spain on the shared Stellantis platform used by the Jeep Avenger, Fiat 600 and Peugeot 208, which let the brand reuse proven engineering instead of designing from scratch.

Returned Lancia to export: 70 dealers in major cities, 80% of sales planned in Italy and 20% abroad within a few years

The brand had shrunk to one car sold only in Italy, so it had almost no overseas franchise left

Stellantis could reuse an existing platform and factory, keeping the revival affordable

The electric Ypsilon targeted Audi and Mini buyers, not budget buyers, to rebuild a premium position

Stellantis planned a full fleet switch to 100% electric from 2026, so the relaunch had a future-proof product

A limited Cassina edition of 1,906 units created scarcity and design buzz for launch

Reviving a near-dead car brand works best when one hero product is built to win a new segment before the badge goes abroad

The new Ypsilon replaced a cheaper, smaller version that sold close to 45,000 units in its final year. Sales outside Italy relied on a network of 70 dealers in major cities, with Lancia aiming for 80% of Ypsilon sales at home and 20% abroad initially. A midsize crossover was planned for 2026 and a compact hatchback for 2028, both fully electric, giving the relaunched badge a product roadmap rather than a one-car bet.