New Lancia Ypsilon Struggles With High Prices And Weak Demand

Lancia’s long-awaited comeback isn’t off to the best start. Despite the launch of the all-new Lancia Ypsilon and a return to key European markets, sales have plummeted. According to ACEA data, Lancia’s deliveries dropped by a staggering 72.7% in the first two months of 2025, with only 2,208 units sold compared to 8,086 in the same period last year.

The reasons behind the slump are clear. For one, the new Lancia Ypsilon is significantly more expensive than its predecessor.

The hybrid model starts at €23,900 in Italy, while the electric version jumps to €29,900—well above the previous-gen model’s sub-€20,000 pricing. The Lancia Ypsilon also faces internal competition within Stellantis, sharing its platform with the Peugeot 208 and Opel Corsa, which enjoy stronger brand recognition.

Lancia, however, isn’t giving up. The brand is opening 70 new showrooms across Europe this year and plans to expand into Germany in 2025. Future models like the Gamma and Delta could help strengthen its lineup. 

Stellantis has fully funded Lancia through 2026, but with CEO Carlos Tavares stepping down, the brand’s long-term future remains uncertain.