Fiat brings back petrol 500 after electric sales cool down

ROME: Fiat has announced the return of its cutesy 500 runabout with a petrol engine after sales of the electric-only 500e version failed to live up to expectations.

The company has begun pre-production of the 500 petrol-electric with series models set to run off the lines from November 2025 at the Mirafiori plant in Turin. Annual output will later be ramped up to 100,000 units.

"With the 500 Hybrid, Fiat is expanding its line-up and reaffirming its long-standing connection to Italy — its people and its values", said a statement on the company's home page.

Fiat had planned to offer the 500 as a pure electric car only and the combustion version was dropped in summer 2024. In North America the petrol car was deleted from the range in 2019.

Over the past 12 months the electric version has been a poor seller and production in Turin was halted on several occasions, owing to a lack of demand.

In France, sales of the 500e between January and April stood at just 2,070 units or 75% less than over the same period the year before. It was a similar picture in Germany, although sales in Italy remained stable, industry watcher Jato Dynamics reported.

With prices staring at US$32,000 (RM136,000) for the 117-horsepower electric motor version, the 500e is considered to be too expensive by many automotive pundits despite its cute looks and park-anywhere ability. The hybrid version is set to be substantially cheaper.

The cool-down in the EV market is forcing several car-makers to alter plans to go electric. Many have assumed that electric vehicles would gradually replace ICE models, but with EV incentives being cut and even eliminated in some countries, consumers are now reconsidering their options.

Concerns about the durability of batteries along with lingering range anxiety have also depressed overall EV sales.

Fiat said the hybrid version will have a 70hp internal combustion engine and a six-speed manual transmission. Details of its hybridisation have not yet been revealed.

Reports from Italy said Fiat will be badged as a 500 Torino, to distinguish the hybrid from the 500e.