First new car from Italy’s Lancia in 13 years unveiled

Italian car maker Lancia – known for its World Rally Championship success in the 1980s – has unveiled the new Ypsilon city hatch, the first in a line of new, predominantly electric models,

It replaces the outgoing Ypsilon – Lancia’s only remaining model, since 2014 – which was introduced in 2011, but is the third best-selling car in the only market in which Lancia still sells cars, Italy, after withdrawing from the rest of Europe in 2017.

Lancia has expressed interest in returning to Australia for the first time since 1985, but local plans are yet to be announced.

Unveiled in Cassina trim – limited to 1906 “numbered and certified” examples, a tribute to Lancia’s founding year – the Ypsilon shares its e-CMP underpinnings with Peugeot’s e-208 and Opel’s Corsa, owned the same Stellantis parent company.

The Ypsilon is distinguished by styling cues that will feature on other new Lancias, including a T-shaped LED signature up front with circular headlights, gloss black wheel-arch trim, and circular tail-lights reportedly inspired by the iconic Stratos rally racer.

On the inside, a large digital instrument cluster sits behind the steering wheel, and there is a tablet-style infotainment touchscreen which introduces Lancia’s SALA (Sound Air Light Augmentation) software housing an artificial intelligence-powered voice assistant. 

According to Lancia, the interior of the Ypsilon was modelled off an Italian lounge, which explains the coffee table-style rounded centre console between the seats – and the Cassina special edition named after an Italian furniture company. 

Lancia is yet to confirm technical specifications for the electric Ypsilon, but it has announced a claimed driving range in European WLTP testing of 403km.

It suggests a similar 54kWh battery to the e-208 and Corsa, matched with a circa-115kW electric motor driving the front wheels.

The upcoming hybrid version of the new Ypsilon is expected to feature a mild-hybrid 1.2-litre three-cylinder petrol engine.

After further photos and technical details are released alongside the Ypsilon’s public debut on 14 February 2024, the electric vehicle is due to start a tour of Italian showrooms. 

Lancia plans to sell the Ypsilon in other European countries including France, Germany and Belgium – and it is due to be joined by a mid-size electric Tesla Model 3 rival in 2026, and a VW Golf-sized electric hatchback in 2028.

“If things go well, why not try to bring (Lancia models with) right-hand drive also in Japan, South Africa or Australia,” Mr Napolitano told Automotive News Europe in 2021.