Automotive News Europe — 2026-02-13
Automotive Industry
Stellantis is bringing back diesel versions of some of its models in Europe as the company retreats from electric vehicles in a move that could help the automaker better compete against Chinese rivals.
Stellantis began in late 2025 to reintroduce diesel versions in Europe for models ranging from passenger vans to the Peugeot 308 and DS 4 hatchback, according to company statements and dealer listings reviewed by Reuters.
The reversal comes as EV sales across Europe have fallen short of projections while regulators have softened emissions rules that previously threatened to phase out combustion engines by 2035.
The U.S., Stellantis’ main market, is also retreating from EVs under President Donald Trump, whose administration repealed a scientific finding that greenhouse gas emissions endanger human health, eliminating car and truck tailpipe emissions standards.
“We have decided to keep diesel engines in our product portfolio and — in some cases — to increase our powertrain offer,” Stellantis said. “At Stellantis we want to generate growth, that’s why we are focused on customer demand.”
As recently as 2015, diesel vehicles made up at least 50 percent of new-car sales in Europe, but they have been declining after Volkswagen and other automakers were found to have installed software to cheat emissions tests, triggering billions in fines and regulatory scrutiny.
According to data from European car lobby group ACEA, diesel vehicles made up just 7.7 percent of new-car sales across the continent in 2025, while full-electric cars accounted for 19.5 percent.
Many automakers have shelved diesels altogether, while Stellantis offers only a handful of models versus dozens just five years ago.
Chinese do not compete in diesel car market
But crucially, it is a segment where rising Chinese rivals specializing in EVs do not compete. Diesels also carry a much lower price tag than full-electric models, giving them a competitive advantage at a time carmakers are struggling.
Stellantis Feb. 6 announced €22 billion ($26 billion) in charges as it scales back its EV ambitions, sending its shares to their lowest since the group’s 2021 creation through the merger of Fiat Chrysler and Peugeot maker PSA.
The company previously said full-electric cars should make up 100 percent of its European sales and 50 percent of U.S. sales by 2030, but demand in both markets has fallen short of expectations.
Stellantis has already brought back popular combustion-engine models such as the Jeep Cherokee and its powerful Hemi eight-cylinder engine as part of its strategy to regain U.S. market share. Last year, it added a gasoline hybrid Fiat 500 alongside an electric version.
In Europe, Stellantis is reviving diesel versions of the Opel Combo, Peugeot Rifter, Citroen Berlingo small vans, and and others, Reuters found.
DS and Alfa Romeo will continue to offer diesels
Stellantis will also continue producing diesel-powered models such as the DS 7 SUV, and the Tonale and Stelvio SUVs and Giulia sedan from Alfa Romeo “in response to sustained customer demand,” the company said.
Data from online marketplace CarGurus shows total new diesel models in the U.K. have also fallen, to 57 in 2025 from 167 in 2020. Collectively, the brands Stellantis sells in Britain, for example, offer just four diesel models, down from 26 in 2020.
Chris Knapman, CarGurus’ U.K. editorial director, said diesel still makes sense for buyers driving long distances or towing trailers. “If you’re a European brand looking to differentiate yourself, diesel is an area where you could have a competitive advantage over those newer brands,” he said.
“Also, Chinese car brands are coming in with lots of new electric and plug-in hybrid cars,” Knapman said. “If you’re a European brand looking to differentiate yourself, diesel is an area where you could have a competitive advantage over those newer brands.”