Fiat's entry EV will challenge popular 500 on price in Italy after incentives

Fiat Chrysler Automobiles' first major step into battery-powered driving has begun with the arrival of the New 500 family of full-electric minicars.

Ten different variants of the New 500 will be offered at prices ranging from 26,150 euros ($30,595) to 38,900 euros in Italy before incentives.

The Action's price drops to 19,900 euros after factoring in a 4,000 euro government subsidy and 2,250 euros in incentive from Fiat and its dealers. A further 4,000 euros can be cut from the price if the customer scraps an old car, bringing the actual purchase price to 15,900 euros.

"If you have an old car to scrap, the New 500 could end up being cheaper than the petrol version [of the 500], whose most popular version costs about 17,000 euros," Fiat brand head Olivier Francois said at a launch event in October.

The New 500's base price in Italy, however, is higher than full-electric rivals such as the Renault Twingo (22,450 euros) and Volkswagen e-Up (23,750 euros), both of which offer four doors.

"The 500 is not mass market, it's not the cheapest car in its segment, and so [the New 500] will continue" this trend, François said while unveiling the New 500 convertible at an event in Milan in March.

The Action variant has the weakest battery pack and electric motor at 23.7 kilowatt hours and 70 kilowatts, respectively, resulting in a range of 185 km (115 miles) under the WLTP testing regime. Deliveries of the Action are schedule to start in May 2021.

All other New 500 variants have an 87-kW electric motor and a 42-kWh battery pack, providing a 320 km range.

All variants of the New 500 will be built in Fiat's Mirafiori factory in Turin. The plant has an annual capacity of 80,000 units of the EVs. The New 500 is part of a plan announced by FCA in 2018 to invest 5 billion euros in Italy up to 2021.

All versions of the New 500 are already on sale, with deliveries of the top-of-the-range La Prima (Italian for first) hatchback and convertible variants starting this month November.

Deliveries of the mid-range Passion and Icon variants will start in February 2021.

Deliveries of the New 500 3+1 variant, which has a small, rear-hinged door on the passenger side to provide easier access to the back seats, will start in April 2021.

The Passion variant is the most affordable of the longer range New 500s at 29,900 euros before incentives. The most expensive New 500, at 38,900 euros before incentives, is the La Prima convertible version.

Fiat will start sales of the New 500 in Brazil next year. If there was sufficient demand, it could be exported to the U.S., Francois said.

Fiat's first electric version of the minicar, the 500e, was built in Mexico until last year. It was sold only in the U.S., where it was a money-loser throughout its six-year production run.

Francois said Fiat decided to develop a new-generation electric 500 for Europe "because we believe an interesting market is there."