Stellantis Resurrects Diesel Models Amidst EV Setback

Stellantis is reintroducing diesel models in Europe, bucking the trend of electric vehicles. This strategic shift comes as EV sales fall short of expectations and Europe relaxes emissions targets, creating an opportunity for diesel vehicles to gain a competitive advantage over Chinese EV competitors.

Stellantis, the owner of iconic brands like Fiat and Jeep, is strategically pivoting by quietly reviving diesel versions of several car and van models across Europe, diverging from the electrification trend. This move, reported through dealer websites and company statements, marks a significant departure from the company's previous electric vehicle ambitions.

The decision made in late 2025 comes amid dwindling EV sales and relaxed European emissions targets, inadvertently extending the life of combustion engines. While EVs accounted for 19.5% of new car sales in Europe, diesel's market share shrank to just 7.7%. Diesel vehicles, known for their affordability compared to EVs, now pose a competitive edge, especially against new Chinese EV offerings.

Stellantis, seeing renewed demand for diesel, has begun reintroducing popular diesel models, including the Peugeot 308 and premium DS 4 hatchback. The company's shift reflects a focus on customer preference and a strategy to maintain market relevance as it withdraws from its extensive EV commitments, having faced significant financial setbacks last week.