Fiat revives C-segment with two new compact models in late 2023
Fiat is expanding its lineup with two new compact models set to launch in late 2023. The brand will re-enter the C-segment with an SUV and a crossover, while also refreshing its city car offerings. These moves come as the company adjusts to shifting market demands and evolving engine preferences.
The two new C-segment models, measuring between 4.40 and 4.50 metres in length, will arrive in the second half of 2023. Buyers can choose from mild hybrid, fully electric, or gasoline engines paired with manual transmissions. This marks Fiat's return to the C-segment after focusing heavily on smaller city cars.
The current Fiat Panda will remain on sale, rebranded as the Pandina, with a starting price below €13,000. Meanwhile, the Fiat 600, equipped with a gasoline engine and manual transmission, will reach dealerships by mid-2023. The 500 Mild Hybrid and Grande Panda, both with manual gearboxes, will also join the 2023 lineup.
Despite strong sales of the 500 Mild Hybrid, Grande Panda, and 600 B-SUV in 2022, the electric 500 saw a sharp decline—sales dropped over 50% due to its higher cost and limited charging infrastructure. Looking ahead, Fiat will no longer offer purely mechanical (non-assisted) transmissions in Germany by the second half of 2024, shifting focus to electric, hybrid, and diesel Multijet engines instead.
Fiat remains committed to city cars, citing their high production volumes and emotional appeal. However, the brand has ruled out expanding beyond the C-segment in the passenger car market, keeping its focus on urban mobility and family-sized vehicles.
The new models will give buyers more options, from budget-friendly city cars to larger family-oriented SUVs. Fiat's strategy reflects a broader shift toward electrification and hybrid systems, while still catering to drivers who prefer manual transmissions. The changes also signal a move away from purely mechanical drivetrains in key markets like Germany.
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