Stellantis on Tuesday announced plans to launch a new small, low-cost electric vehicle for the European market, betting on a revival of the region’s shrinking entry-level car segment.Production of the so-called E-Car — designed to be affordable, compact and fully electric — will start in 2028 at its Pomigliano d’Arco plant in southern Italy, the Franco-Italian automaker said in a statement.The E-Car will draw on partnerships to keep costs down and speed up development, and will help support local manufacturing jobs, Stellantis said.CEO Antonio Filosa, due to present Stellantis’ new business plan on Thursday, said the E-Car aimed to tap into demand for “small, stylish vehicles” produced in Europe for the European market.Stellantis executives have argued that Europe, where safety and emissions rules have significantly added to the cost of new cars, needs a new generation of stripped-down, cost-efficient small vehicles, similar to Japan’s “kei cars”.They have warned that without more affordable electric models, the shift to zero-emission mobility pushed by EU regulation risks stalling, particularly among lower-income consumers.Stellantis’ Pomigliano plant currently manufactures the Fiat Panda city car, which is set to remain in production at least until 2030.Reuters