Stellantis has good news for shoppers who are looking to make the switch to battery-electric vehicles but can't find models within their price range.

The Franco-Italo-American auto conglomerate has announced that it plans to add a second affordable battery-electric vehicle to its lineup to compete with Renault and Chinese automakers, especially in Europe. The new EV will be a no-frills model inspired by the Fiat Panda that will carry a price tag of less than 25,000 euros ($27,500), Fiat brand CEO Olivier Francois said in an interview, according to Bloomberg.

The executive said the new Fiat entry-level EV will be unveiled in July 2024 to take on Renault's Dacia Spring. "There is a real need for more affordable EVs," Francois said. Fiat's entry-level EV will likely take inspiration from the Centoventi Concept unveiled in 2019.

Earlier this year, Fiat also announced the reintroduction of the electric 500 to the United States in Q1 2024. The US is Stellantis' largest and most profitable market.

Fiat's parent company previously announced plans to start selling a fully electric city car from Citroën early next year. The small EV from the French brand would also be priced under 25,000 euros and would offer a range of over 186 miles (300 kilometers).

Gallery: Fiat Concept Centoventi at the 2019 Geneva Motor Show

That model will be called the Citroën e-C3 and will be made in Slovakia, which will allow Stellantis to keep costs low and better compete with the Dacia Spring, which is made in China for Renault's low-cost Dacia brand. The Citroën e-C3 should also compete with the upcoming Renault 5, which will be made in France.

Since Stellantis is known for the practice of sharing vehicle platforms across its many brands to reduce costs, the new entry-level EVs from Fiat and Citroën are also expected to share components. Olivier Francois said that "it's very likely that there will be synergies" with the platform used for the new Citroën e-C3.

Stellantis' announcement comes as the pressure on automakers to deliver affordable EVs is increasing, especially in Europe where Chinese brands are on the offensive. Automakers are also battling to retain mass-market buyers, who have seen their spending power reduced by inflation.

Stellantis CEO Carlos Tavares last month warned that the middle class will be priced out of the EV market if automakers can't absorb the additional production costs they require. The executive said the sweet spot for affordable EVs is "around $25,000."

He added that reaching this price point will be essential to safeguarding the company's US manufacturing footprint and noted that building affordable EVs that are profitable is the "real thing we should be discussing" with the UAW during negotiations this year.

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