Stellantis expands diesel lineup in Europe amid slower EV demand
Stellantis is expanding its diesel-powered portfolio in Europe, marking a strategic adjustment to its electrification plans. The automaker has begun reintroducing diesel variants across at least seven passenger car and van models since late 2025, according to a review of dealer listings and company disclosures. The move comes as electric vehicle demand has not met earlier projections and regulatory timelines in Europe evolve.
The reintroduction covers a range of models, including compact hatchbacks and passenger vans such as the Peugeot 308, Opel Astra and Citroën Berlingo, among others. Stellantis has indicated that it intends to retain diesel engines within its powertrain mix in response to market demand. While diesel’s share of European new car sales has declined significantly over the past decade – from around half of all registrations in 2015 to under 8 percent in 2025 – there remains a segment of buyers who prefer diesel for long-distance driving and towing applications.
The broader context includes softer-than-expected EV sales across Europe and the United States. Regulatory changes in Europe have moderated some emissions targets, allowing internal combustion engines to remain in the market for a longer period than previously anticipated. At the same time, competition from Chinese manufacturers, who largely focus on electric and plug-in hybrid vehicles, has intensified. Diesel models, typically priced lower than comparable EVs, may offer a pricing advantage in certain segments.
Stellantis had earlier outlined ambitious electrification goals, targeting a fully electric lineup in Europe by 2030. However, recent financial disclosures show the company is reassessing aspects of its EV strategy amid market headwinds. Alongside diesel’s return in Europe, Stellantis has also revived certain combustion-engine offerings in the U.S. market. Industry analysts note that while overall diesel model availability has reduced sharply in recent years, the technology continues to hold relevance for specific use cases, positioning Stellantis somewhat against the prevailing industry shift toward full electrification.
