Fiat backflips on EV-only 500 hatch

STELLANTIS brand Fiat is estimated to have lost 150,000 sales over the past 18 months since discontinuing its petrol-powered Micro segment competitor, the 500 hatch.

The confronting news has forced the Italian car-maker to take what some are labelling “a more pragmatic approach”, with reports confirming Fiat will offer both full-electric and hybrid-combustion powertrains in the model’s next generation as it works to recover lost profits.

Speaking with Automotive News Europe in Turin this week, Fiat chief executive officer Olivier Francois said the next 500 is in its design phase, with final powertrain offerings to depend on “regulation and market response in the coming years”.

Before then, the Italian brand will launch a hybridised petrol-powered model, dubbed the 500 Hybrid, which is set to launch from December.

Expected to retail from around €17,000 ($A30,700) in its home market, it is hoped the 500 Hybrid will revive interest in the current generation model – a model that was designed from the outset as an electric-only vehicle.

While it is not known how much re-engineering was undertaken to enable the current generation 500e to accept a petrol engine, reports indicate that Stellantis spent €100 million ($A180m) to upgrade its Mirafiori facility to produce both 500e and 500 Hybrid variants.

GoAuto understands the 2026 Fiat 500 Hybrid will feature a 1.0-litre three-cylinder petrol engine with 48-volt mild hybrid assistance dispatched to the front wheels via a six-speed manual transmission.

Specifications of the driveline are yet to be revealed, however it is assumed the unit is a resurrection of the offering found under the bonnet of the previous generation 500, producing 52kW and 92Nm.

The future of the 500e…

Launched in 2020, sales of the 500e in Europe and abroad have failed to match those of the preceding model, partly because of its standing as an electric-only vehicle, and partly from an astonishing increase in price.

In Europe, the current Fiat 500e is available from €29,950 ($A53,570) where the petrol-powered predecessor was available from as little as €8999 ($A16,125), depending on market and trim level.

Further, the Fiat 500e has faced stiff competition since its arrival in the marketplace, with a growing number of entrants now available from Citroen, Hyundai, Kia, Volkswagen, and several Chinese brands.

“We thought that over time the planets – product, technology, charging infrastructure, demand and public incentives – would have aligned. But they did not,” Mr Francois told Automotive News Europe.

According to figures supplied by Dataforce, Fiat produced close to 44,000 examples of the 500e in its first full calendar year on sale (2021), and just over 66,000 units in 2022.

That number fell slightly to 62,000 units in 2023, and to just 29,000 units in 2024.

In the first five months of 2025, it stands at just 7000 units.

By way of comparison, the petrol-powered 500 consistently sold more than 100,000 units per annum.

Mr Francois said that in addition to offering a mild-hybrid version of the current model, Fiat will release an “upgraded and cheaper version” of the 500e in 2027, with a target price of no more than €20,000 ($A35,840).

The model is expected to offer a lower capacity and cheaper chemistry battery than the current model, alongside lower equipment levels, and motor output figures.

The Fiat 500 in Australia

While Fiat’s hopes for a surge in demand for electric-powered Micro cars did not eventuate – neither in Europe nor Australia – the 500e has not been without its successes.

Year-to-date figures to 30 June (2025) show 207 examples of the model have been registered locally, while in the 2024 full calendar year the marque sold 527 examples, including those of the Abarth performance variant.

VFACTS figures do not breakdown Fiat 500 sales by motive drive type but do show some 11,544 examples of the model were sold locally between 2014 and 2024.