The pace of electrification slows, Stellantis' strategy takes a "big turn": reintroducing at least 7 diesel models in Europe

As the electrification transformation encounters market resistance, the world's fourth-largest automaker Stellantis is going against the industry trend, planning to reintroduce at least seven diesel models in the European market. This strategic shift marks the company's need to reassess the market value of traditional power systems after aggressively pushing for electrification.

According to Reuters, Stellantis's move directly addresses the real challenges posed by the slowdown in electric vehicle sales. Under strict emission regulations, weak consumer demand, and competitive pressure from electric vehicle companies, European automakers are caught in a difficult balance between ideals and reality. Stellantis's choice stands in stark contrast to the industry's general abandonment of diesel technology, highlighting the strategic dilemma faced by traditional automakers amid the pains of transformation.

This adjustment serves as a bellwether for the European automotive industry. Against the backdrop of strong government pushes for electrification, the "restoration" of traditional power systems could trigger a chain reaction, affecting the entire industry's technological direction and capital allocation. For Stellantis, the return of diesel models aims to provide a buffer during the transition to electrification, reserving more technological options before firmly establishing itself in the electric vehicle market. It is reported that this plan will gradually roll out in multiple European markets.

Diesel Strategy Against the Trend

According to Reuters, the company is "going against the trend" by reintroducing diesel models in several European markets, sharply contrasting with the mainstream trend of phasing out diesel technology over the past decade. This decision directly addresses the core dilemma of underwhelming electric vehicle sales. Faced with a slowdown in consumer acceptance of electric models, Stellantis has chosen to restart mature diesel technology to maintain its current market share and profitability. In explaining this strategy, the company positions diesel vehicles as a "defensive advantage" during the transition period, leveraging the technological accumulation of traditional power systems to carve out a differentiated path in the electrification race, buying valuable buffer time to improve its electric vehicle product line.

This move profoundly reflects the structural contradictions faced by European automakers during the transition period: the need to advance electrification under stringent environmental regulations while also maintaining profitability in a fiercely competitive market. The return of diesel models is a phased compromise between these conflicting ideals and realities