Stellantis is betting on fossil fuel again in passenger and commercial models after demand for electric vehicles stagnates in Europe
The Stellantis group is promoting a strategic change in its European portfolio to face the stagnation of the electric vehicle market and the advance of Chinese manufacturers. Contrary to the global trend of full electrification, the company has decided to reintroduce diesel powertrains in several passenger models in Europe. The move comes after demand for battery-powered models fell short of expectations, forcing the group to seek alternatives for immediate profitability.
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The resumption of diesel works as an “exclusion zone” against Chinese brands, such as BYD and MG, which focus massively on electric and plug-in hybrids. As new entrants have skipped the development phase of modern diesel engines, Stellantis occupies a technical space where rivals are not yet able to compete. Among the models that return to offer the fuel are the Opel Combo, Citroën Berlingo and Peugeot Rifter vans, as well as the Peugeot 308 and Opel Astra sedans and hatches.
The financial factor was decisive for the turnaround. Stellantis recently recorded charges of 22.2 billion euros (about R$ 128.7 billion) arising from writedowns related to the frustrated electric vehicle targets. In addition, the global political scenario, including the relaxation of emission targets in the European Union and environmental deregulation in the United States, has relieved pressure on the end of heat engines.
In the luxury segment, the demand for autonomy and torque over long distances ensured the maintenance of diesel for models such as the DS 7 and the Alfa Romeo line (Giulia and Stelvio). Although diesel’s share of the European market has plummeted from 50% in 2015 to just 7.7% in 2025, the fuel is still seen as a cost-effective solution for fleet owners and drivers who travel long monthly mileages. For Stellantis, the engine that many considered obsolete has become a vital shield to preserve its market share.
