Fiat is preparing a new small electric vehicle called the Koala, which is expected to sit below the Grande Panda crossover hatchback and Grizzly SUV in the brand’s range. Positioned as a practical, budget-focused urban EV, the model is reportedly being developed with a target price below €15,000.

The Koala is expected to serve as an electric counterpart to the combustion-powered Pandina, although the two models are likely to have different roles. Fiat’s new EV will emphasize utility rather than following the character of the existing 500, while the aging Pandina could eventually be replaced by another combustion or hybrid vehicle.

Small EV based on the Citroën 2CV project

The upcoming Fiat is being developed alongside a Citroën 2CV-inspired electric city car within Stellantis. Fiat CEO Arnauld Belloni told Autocar during the Paris Motor Show that the company is working on several vehicles based on the new E-Car platform, including a small model derived from the 2CV project.

Belloni also referenced Fiat’s trademark filing for the Koala name, placing it alongside the Panda and Grizzly names in the automaker’s lineup. The Koala would therefore become part of Fiat’s expanding animal-themed range, separate from its 500 models and light commercial vehicles.

The project is intended to take advantage of Europe’s upcoming E-Cars regulations. These rules are separate from the requirements for heavier quadricycles such as the Fiat Topolino, though the source does not provide technical details about the Koala’s platform, powertrain or dimensions.

Design will differ from the Citroën 2CV

Fiat design chief François Leboine said the company’s model is at a similar stage of development to the Citroën 2CV project, but Fiat has not yet shown the vehicle publicly. The company decided that the Paris event was not the appropriate occasion for a preview and plans to reveal the urban EV at a later time.

Although the two vehicles share a development connection, the Fiat will not use a neo-retro interpretation of the 2CV. Leboine said the Koala would take a notably different design direction, with some styling inspiration potentially coming from concepts created in Fiat’s earlier E-Car design competition for Italian university students.

The winning Ippo proposal featured a boxy three-seat hatchback layout and prominent headlights. The Lumo Su Misura and Fizz concepts were selected as runners-up. Fiat’s design team was impressed by the students’ work, and Leboine indicated that some of their ideas had influenced future production vehicles.

Fiat is revising the lower end of its range

Fiat has described the Koala as part of a broader restructuring of its entry-level lineup, including the Pandina and 500. The Pandina has been in production since 2011 and remains a strong seller in Italy, but its eventual replacement strategy remains unclear.

The Koala is expected to arrive by 2028 based on the timing associated with the related Citroën project. Fiat has not yet disclosed a full reveal date, production details, specifications or pricing beyond the reported sub-€15,000 target.