Stellantis Revives Diesel Engines for 7 Models Amid Retreat from EV Models

Fiat-to-Jeep owner Stellantis is resurrecting diesel versions of at least seven car and passenger van models across Europe as it retreats from electric vehicles (EVs), according to a review of dealer websites and company statements, news agency Reuters has reported.

In a unreported strategic shift earlier, global automotive group Stellantis began in late 2025 to reintroduce diesel versions in Europe for models ranging from various passenger vans to the Peugeot 308 and premium DS No. 4 hatchback. EV sales have lagged expectations, and the shift comes as Europe waters down emissions targets that would allow combustion engines to stay around for longer.

Also read: PM RAHAT Scheme Launched: ₹1.5 Lakh Cashless Treatment for Road Accident Victims

The US, the main market for Stellantis, is also retreating from EVs under President Donald Trump, whose administration this week repealed a scientific finding that greenhouse gas emissions endanger human health, eliminatingcar and truck tailpipe emissions standards.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," the company told Reuters in a response to its findings. 

"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 per cent of new car sales in Europe but they have been declining since the 'Dieselgate' scandal that year, when some of the world's largest carmakers were found to have manipulated emissions tests.

According to data from European car lobby group ACEA, diesel vehicles made up just 7.7 per cent of new car sales across the continent in 2025, whilst fully electric cars accounted for 19.5 per cent.

Many automakers have shelved diesels altogether, while Stellantis itself offers only a handful of models versus dozens just five years ago.

But crucially, it is a segment where rising Chinese rivals specialising in EVs do not compete. Diesels also carry a much lower price tag than fully electric models - giving them a competitive advantage at a time when carmakers are struggling.

Stellantis last week announced 22.2 billion euros ($26.4 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 fully electric cars should make up 100 per cent of its European sales and 50 per cent of US sales by 2030, but demand in both markets has fallen short of expectations.

Stellantis has already brought back popular combustion-engine models like the Jeep Cherokee and its powerful 'Hemi' eight-cylinder engine as part of its strategy to regain US market share. Last year it added a petrol hybrid version of the Fiat 500 alongside an electric version.