The Italian brand Lancia, owned by the Stellantis corporation, has faced a significant drop in sales despite the expansion of its distribution network in Europe. In the first two months of 2025, the company sold only 2,208 cars, a drop of 73% compared to the same period in 2024, when 8,098 units were sold.
In February 2024, Lancia introduced the new, fifth generation of the Ypsilon hatchback, built on the French CMP platform, discontinuing production of the previous model. This move was intended to revitalize the brand and expand its presence in the European market. However, and despite the brand's entry into new markets such as France, Spain, Belgium and the Netherlands, sales have decreased significantly. But why?
One of the reasons for the decline in demand is the significant increase in the price of the new Ypsilon. If the previous generation cost around 15,000 euros, the new hybrid version with a capacity of 100 hp starts at 23,900 euros, and the electric version with a capacity of 156 hp - from 29,900 euros. This makes the Ypsilon less competitive in its segment.
In addition, the design of the new Ypsilon has received mixed reviews, as it shares elements with other models on the CMP platform, such as the Peugeot 208. This definitely reduces its appeal to potential buyers looking for uniqueness and individuality, which the brand offered in the past.
Lancia's plans for future models also raise questions. The flagship Lancia Gamma crossover on the STLA Medium platform is expected to appear in 2026, and the new version of the Lancia Delta - in 2028. However, given the current trends and challenges facing the brand, the success of these models remains questionable.
Overall, Lancia faces serious challenges in its attempts to regain its position in the European market. High prices, controversial designs and strong competition put the future of the brand in doubt, and decisive action is needed to correct the situation.