Stellantis reintroduces diesel — retreats from EV push

In a strategic shift few had predicted, Stellantis — owner of Fiat, Peugeot, Jeep and DS — is reintroducing diesel versions of at least seven car and van models in Europe. The decision comes amid growing uncertainty about the pace of the EV transition.

Diesel makes a comeback

Since late 2025, Stellantis has quietly begun offering diesel versions of models such as the Peugeot 308, Opel Astra and premium hatchback DS No. 4, according to a Reuters review of dealer websites and the company's own statements.

"We have decided to retain diesel engines in our product portfolio and — in certain cases — to expand our powertrain offering," Stellantis stated in a response to Reuters. "We want to generate growth, and therefore we are focusing on customer demand."

The EV retreat

The backdrop is clear: EV sales have not lived up to expectations. Stellantis recently booked €22.2 billion in write-downs as it scaled back its EV ambitions — causing the share price to fall to its lowest level since the company was formed in 2021.

The company had previously stated that EVs would account for 100 per cent of European sales and 50 per cent in the US by 2030. Those plans are now being revised downward.

Diesel as a competitive advantage

Diesel has fallen dramatically in Europe since the "Dieselgate" scandal in 2015, when several manufacturers were caught manipulating emissions tests. From accounting for half of all new car purchases in 2015, diesel represented just 7.7 per cent in 2025.

But for Stellantis, there's a strategic logic: diesel cars cost significantly less than EVs, and — perhaps more importantly — Chinese competitors such as BYD, MG and Xpeng are focused exclusively on electric vehicles. Diesel is thus a segment where European manufacturers can compete without Chinese pressure.

What does this mean for the Swedish market?

Sweden has gone further in the EV transition than most European countries. Nearly one in three new cars sold in Sweden is fully electric, and privatleasing of EVs has never been more popular.

But Stellantis' decision signals that the transition won't be linear. For Swedish consumers, this could mean:

More choices:: Peugeot, Opel and other Stellantis brands may offer diesel versions on the Swedish market as well

Better leasing prices on EVs:: When manufacturers need to push their EVs to meet EU emissions targets, leasing prices tend to fall

Hybrid as a middle ground:: Stellantis has already added petrol hybrid versions of the Fiat 500 alongside the electric version — a trend that could accelerate

Is the EV future under threat?

No, probably not. Despite the retreat, all data shows that the EV trend in Europe continues upward. But the road there is becoming more winding than the industry had hoped. EU emissions regulations still apply and put clear pressure on manufacturers.

For privatleasing customers, this doesn't change the recommendation: an EV is still the most economical choice in terms of total cost. But it shows that it pays to compare all options — electric, hybrid and yes, perhaps even diesel — before signing a leasing contract.

Compare all privatleasing deals at PrivatLeasa.se and find the car that suits your situation.