"Changing Lanes" to Overtake: Global Fourth-Largest Automaker Stellantis Plans to Revive Diesel Vehicles in European Market

IT Home, February 13 — According to Reuters, the world’s fourth-largest automaker Stellantis is adjusting its electrification strategy, quietly restarting diesel vehicle production in Europe, involving at least seven passenger and van models.

Starting from the end of 2025, Stellantis will resume production of several diesel models, including the Peugeot 308 and DS 4. The background is that electric vehicle sales have not met expectations, and Europe has relaxed emission policies to extend the lifespan of internal combustion engines.

In the U.S. market, the policy environment for electric vehicles is also changing. This week, the U.S. government revoked the greenhouse gas emission hazard designation, thereby canceling tailpipe emission standards.

Stellantis responded that the company will retain diesel engines and expand powertrain options on some models. The company stated this move is to better meet market demand and achieve growth.

Since the 2015 “Dieselgate” scandal, Europe’s diesel vehicle share has continued to decline. By 2025, diesel cars will account for only 7.7% of new car sales, while pure electric models will account for 19.5%. Many automakers have completely exited the diesel market, and Stellantis’ diesel model lineup has also significantly decreased.

However, currently few Chinese automakers are involved in the diesel segment. Compared to electric vehicles, diesel cars are cheaper, making them more attractive under the industry’s increasing profitability pressures.

Recently, the group allocated €22.2 billion (IT Home note: approximately 182.145 billion RMB at current exchange rates) to reduce the scale of electric vehicle expansion, causing its stock price to fall to the lowest level since the merger. Previously, Stellantis planned for full electrification in Europe by 2030 and 50% pure electric sales in the U.S., but market reactions fell short of expectations.

The group has resumed production of Jeep Cherokee and Hemi V8 engines in the U.S. and added a gasoline hybrid version for the Fiat 500.

In Europe, diesel versions of Opel Astra, Opel Combo, Peugeot Rifter, Citroën Berlingo, and other models are being reintroduced. Diesel models of DS7, Alfa Romeo Tonale, Stelvio, and Giulia will also continue production.

In the UK, the number of new diesel cars has decreased from 167 in 2020 to 57 in 2025. Stellantis brands currently offer only four diesel models in the UK.