Lancia: "every time we sell a new Ypsilon, it's like selling two of the previous generation".

The phrase comes from Luca Napolitano, boss of Lanciaat the official presentation of the new Lancia Ypsilon HF in Balocco. And it sums up the Italian brand's bold gamble: sell less, but sell better.

A new generation that changes everything

Gone are the days of the old Ypsilon, a chic but rustic city car produced at Tychy in Poland on an aging Fiat base. Back then, the entry ticket started at €17,650 and sold like hotcakes on the domestic market: over 24,000 units in Italy alone in the first half of 2024.

With the new generation of Lancia YpsilonWith a new eCMP platform, production relocated to Saragossa in Spain, hybrid and electric powertrains, and a clear move upmarket, the Ypsilon Hybrid has changed everything. The result is a hybrid Ypsilon that starts at €25,000, with no discount. Lancia makes no secret of the fact: The brand claims to generate twice as much revenue from each unit sold than from the previous model.

Selling better, but much less

Problem: customers follow, but cautiously. In the first six months of 2025, Lancia registered 5,367 Ypsilons in Italy, and just 981 cumulative units in France, Spain, Belgium and the Netherlands. Half-year total: 6,348 units. For the record, the old model did four times better in Italy over the same period, with over 24,000 registrations.

Of course, margins have improved, the average shopping basket has climbed, and management is delighted: "Every new Ypsilon is like two old ones in terms of sales". The share of sales of top-of-the-range versions exceeds 50 %, the electrified mix is twice the market average, and the customer base is expanding: +60 % of conquests, with customers coming from Toyota, Audi and Volkswagen. Gender, too, is becoming more balanced: once a very feminine model (70 %), the Ypsilon now appeals equally to men and women.

A premium strategy stymied by market realities

But the reality on the ground is more complex. In Italy, the Ypsilon fluctuates between 600 and 800 registrations per month. Since May 2025, it has even disappeared from the top 50, after briefly overtaking the Audi A1 and Suzuki Swift in April.

In other European markets, the breakthrough has been timid: in the first half of 2025, just 389 units in France, 410 in Spain, 106 in Belgium and 76 in the Netherlands. Its premium positioning, exclusively hybrid (or electric) powertrain, and €25,000 base price put it up against more affordable competition, such as the Peugeot 208 (€17,200) or the Renault Clio (€19,000) petrol version.

Discounts and versions to revive the machine

Aware of the price squeeze, Lancia is reacting: in Italy, a sales operation has lowered the price to €19,900 subject to financing, i.e. a discount of almost €5,000. For the time being, this measure is limited to the Italian market.

Above all, the brand is counting on its new models to make a splash: the sporty 280 hp electric Ypsilon HF, to resurrect the legendary badge. And an HF-Line version, wiser and more accessible, for those who want the style without the budget of the real HF. In the future, a non-hybrid version will also be available, reserved for Italy, at a lower entry price.

Between ambition and reality: the Lancia gamble

"It's a challenge," admits management. "Going from a single model to a range of three models, from Italy to Europe, with a premium positioning that takes time... and resilience."

A gamble played out on a knife-edge: less volume, more value. But only if the new Ypsilon, despite its undeniable qualities, finally finds its place in a city car market where price remains, more than ever, the king of arguments.