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EV shock! Stellantis halts production of the Fiat 500e as sales dwindle of premium BYD Dolphin, GWM Ora and MG4 rival

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2025 Fiat 500e
Samuel Irvine
Cadet Journalist
13 Sep 2024
4 min read

Stellantis has announced that production of the Fiat 500e will be paused for four weeks due to low consumer demand.

It comes amid a global slowdown in EV sales in Europe, due in part to a tapering of government subsidies, high production costs and increased competition with China, causing many European automakers’ market shares to shrink.

"The measure is necessary due to the current lack of orders linked to the deep difficulties experienced in the European electric [vehicle] market by all producers, particularly the European ones," Stellantis said in a statement according to UK publication Autocar.

The pause, set to come into effect on Friday, will see production of the 500e cease at the company’s factory in Turin, the home of the Italian brand.

According to Jato Dynamics, sales for the Fiat 500 (both petrol and electric) were down 24 per cent across Europe in the first six months of 2024 compared to last year, with Stellantis selling 74,885 examples, the majority of which were petrol models.

A temporary cease of production of the Fiat 500e is another blow to the company’s Italian manufacturing operations, particularly at the Mirafiori plant where output has dwindled in recent years.

The brand’s most popular model, the Fiat Panda, is built in Naples, while the petrol Fiat 500 is produced in Poland.

In an attempt to resurrect sales, Stellantis have announced they will invest €100 million ($164 million) into the Mirafiori plant to develop a higher performance battery along with a hybrid version of the Fiat 500e to go on sale between 2025 and 2026.

Whether that proves enough to boost Stellantis’ sales, though, is uncertain.

2025 Volkswagen ID.Buzz
2025 Volkswagen ID.Buzz

Since July last year Stellantis’ market share in Europe has fallen from 4.0 per cent to 2.7 per cent, according to Euro News.

The sales shocks aren’t just being felt by Stellantis though, with Volkswagen, Europe’s largest vehicle manufacturer, announcing it may have to close factories in Germany for the first time in its 87-year history.

The German automotive giant's market share fell from 7.5 per cent last year to 6.6 per cent in July 2024, with the company’s CFO Arno Antlitz suggesting the company has one or two years at most to turn things around.

European-made EVs enjoyed bumper years following the pandemic, however, with the tapering of government subsidies and high production costs post-pandemic, purchases of EVs in Europe continues to slide.

In Germany, the cost of EVs remains 20 per cent higher than internal combustion models. Analysts have also noted consumers are generally hesitant to buy EVs due to high up-front costs and concerns over resale value.

EV sales are predicted to shrink by two per cent in Europe for 2024, according to Bank of America, down significantly on previous forecasts, with Europe’s car market set for tumultuous times as the European Union sticks by an ambitious target of banning all internal combustion cars by 2035.

2025 BMW iX3 (image: John Law)
2025 BMW iX3 (image: John Law)

Meanwhile, China’s largest EV maker BYD set records at home and abroad last month, registering 373,083 sales as China became the first country to sell 1 million EVs in a month.

Despite a 17 per cent tariff on Chinese-made BYDs imported to Europe, the company still has big plans for the continent, hoping to sell 10 per cent of Europe's EVs by 2030.

Most major European car brands have struggled in Australia this year, with the exception of BMW.

BMW sells six EVs in Australia and has seen its sales grow by about four per cent for 2024.

Fiat sales have dropped about 30 per cent, down from 532 sales this time last year to 371, all of which were made up by the Fiat 500 and Abarth (petrol and electric).

Mercedes-Benz sales have shrunk by 21 per cent, down from 16,788 to 13,264, while Volkswagen's sales have fallen from 27,659 this time last year to 24,197, representing a decrease of 12.5 per cent.

Samuel Irvine
Cadet Journalist
Since visiting car shows at Melbourne Exhibition Centre with his Dad and older brother as a little boy, Samuel knew that his love of cars would be unwavering. But it wasn’t until embarking on a journalism masters degree two years ago that he saw cars as a legitimate career path. Now, Samuel is CarsGuide’s first Cadet Journalist. He comes to CarsGuide with an eagerness to report on a rapidly advancing automotive industry, and a passion to communicate the stories car buyers need to know most.
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