Stellantis is reintroducing diesel versions for at least seven passenger models and commercial vans in Europe starting in late 2025, as sales of electric vehicles (EVs) trend lower than initial expectations and the regulatory environment becomes more flexible for internal combustion engines.
Which models are returning
According to reports, diesel versions are returning to models such as the Peugeot 308 and the premium DS 4, while the European lineup will also include or maintain the following: Opel Astra, Opel Combo, Citroen Berlingo, DS 7, Alfa Romeo Tonale, Alfa Romeo Stelvio, and Alfa Romeo Giulia. The company states that it is "maintaining and – in some cases – increasing" its diesel engine offerings, aiming to bolster growth and meet existing demand.
Why the strategy is shifting
Sales of EVs in Europe did not confirm high expectations, while the relaxation of European emission targets allows for a longer presence of thermal engines in the market. Meanwhile, in the US – a key market for the group – the administration of Donald Trump is also moving toward limiting strict emission standards, altering the global framework for EVs.
From Dieselgate to the new reality
The market share of diesel vehicles in Europe has collapsed since 2015, when the Volkswagen emissions scandal ("Dieselgate") broke. According to ACEA, in 2025, diesels accounted for just 7.7% of new registrations, compared to 19.5% for battery electric vehicles. However, diesel cars remain significantly cheaper than fully electric models, offering a competitive advantage at a time when European manufacturers are struggling to compete with rapidly growing Chinese EV companies.
Economic pressure and target revision
Stellantis recently announced losses of €22.2 billion, with its stock falling to the lowest levels since the group's creation in 2021 through the merger of Fiat Chrysler Automobiles and PSA Group. Although the company had set a goal for electric vehicles to make up 100% of European sales and 50% of American sales by 2030, weaker demand is now leading to a more realistic – and technologically neutral – approach.
The return to diesel does not signal an abandonment of electrification, but rather a strategic rebalancing of the portfolio within a changing regulatory and commercial environment, where demand, cost, and international competition are redefining the priorities of the European automotive industry.
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