Italy has unveiled a new engine that has the potential to end the dominance of Tesla and BYD. The Italians have always made their cars with a sense of tangible passion and soul. Nearly every single automotive manufacturer in the world has focused their efforts on the electrification of its lineup. With varied results. The production process of the electric vehicle is much more expensive and complex than a traditional internal combustion engine. That high cost of production makes its way down to the consumer. The question is, can Italy lead the hybrid car sector with its new car?
What has caused the slowing down of fully electric vehicle sales?
When Tesla emerged as the global leader in the EV sector, many automotive companies were surprised by the success that it found with the climate-conscious consumer. To their credit, they began to create their own EVs in an attempt not to fall behind the likes of Tesla and BYD. BYD has concentrated on making a wide range of fully electric vehicles, from small hatchbacks to large trucks.
The world flocked to the EV like bees to pollen. At Tesla’s peak in 2020, they sold 499,550 vehicles. While BYD’s best sales have been more recent. In 2024, it sold a remarkable four million vehicles, an increase of 41.26% from 2023. However, sales for both of those companies have slowed down. Tesla’s problems are of a more public relations issue, while BYD’s sales outside of China (their main market) have slowed as well.
As a result, the major car manufacturers have been forced to reconsider their approach to the sustainable carbon-neutral goals set out by the world’s governments and consumers. The answer is the hybrid engine, according to some. The hybrid engine uses both an electric motor and a traditional gasoline powered internal combustion engine.
What has this iconic Italian car manufacturer made for the hybrid sector?
One major factor that has hindered the continued sales success of the EV is the price. In most cases, the electric version of a specific car can be almost twice the price of its ICE (internal combustion engine) counterparts. While we understand the concept that with an EV, you remove the cost of filling up with gasoline, the cost of an EV is simply too much for most people.
This means that the hybrid engine is the best solution for the climate-conscious consumer that simply cannot afford the high cost of an EV. And FIAT have obliged them. Their iconic 500 model is one of the best known shapes in the automotive industry. And since they also experienced a disastrous sales campaign for the electric version, the 500e, they have announced a new hybrid version set for release this year.
The Italian giant has announced a return to the one-liter engine that powers the Panda, with an electric motor picking up the slack. It must be noted that they claim the car will not drive like an electric vehicle. The Italians have always had a speculative view of the EV and FIAT shares that view. However, they are one of the largest automotive manufacturers in the world, so they needed a plan to compete.
Can FIAT lead the world away from the EV towards the hybrid car for the future?
With the novelty of the EV fading, the automotive industry is forced to readjust its cars to suit the ever-changing demands of the consumer. The hybrid engine is being embraced by the automotive manufacturers globally. FIAT has a long and successful history, especially in Europe. Its cheap and cheerful cars have experienced great sales around the world. The new hybrid car promises to continue that trend. Can FIAT become the global leader in the hybrid sector? The world eagerly awaits the new hybrid 500.
