EU Creates E-Cars: Cheap Electric Cars to Save the Market

Published on May 21, 2026 | Translated from Spanish

The European Commission has created the M1E category, or E-Cars, for urban electric vehicles under 4.2 meters and priced below 15,000 euros. Regulations are frozen for 10 years to facilitate mass production. Stellantis is already looking to China to manufacture models like the Fiat Panda or a revival of the 2CV, aiming to fill the gap of affordable cars in Europe.

Compact electric car assembly line, workers installing battery pack under a sub-4-meter vehicle body, robotic arm placing a 15.000 euro price tag component on the chassis, Stellantis engineers inspecting a Fiat Panda prototype next to a retro 2CV silhouette, technical illustration style, bright factory lighting, blue and white EU flag decal on the assembly robot, conveyor belt with multiple small EV frames in motion, exposed wiring harnesses and inverter modules visible, photorealistic engineering visualization, clean metallic surfaces, dynamic action of mass production process

Chinese technology and low-cost platforms for the new urban EVs 🚗

Stellantis plans to use technology from its Chinese partners to develop these E-Cars, reducing engineering and production costs. CEO Antonio Filosa states that the lack of cheap cars is key to the sector's crisis. Models, such as the new Panda, could share a platform with local kei cars, adapting their size and components to meet European regulations without exceeding the 15,000 euro price cap.

The 2CV returns, but now with batteries and without a top hat 🔋

Yes, the iconic 2CV could make a comeback, but in an electric version and under 4 meters. However, don't expect space for a baguette basket or wicker seats. It will be a kei car with four cramped seats and just enough range for a trip to the supermarket. At least you won't have to pay double for a car that used to cost as much as a good sandwich.