Lancia, a brand with a rich heritage in the automotive industry, recently faced a significant setback in its ambitious revitalization strategy. Despite launching the new Ypsilon in February 2024, marking its first new model in 13 years, the company witnessed a dramatic decline in sales throughout 2025. This downturn occurred even as Lancia expanded its presence into various European markets beyond Italy, including France, Spain, Belgium, Luxembourg, the Netherlands, and Germany, establishing 70 new showrooms.
According to data from the European Automobile Manufacturers' Association, Lancia's sales plummeted by 64 percent, totaling a mere 11,754 vehicles in 2025. This figure is strikingly low when compared to its performance a decade earlier, specifically in 2016, when the brand (including Chrysler sales) moved 67,225 units across the EU and EFTA regions. The current situation underscores the difficulties Lancia is encountering in reclaiming its market share. Analysts from Dataforce reported similar numbers, confirming that only a negligible number of Chrysler vehicles were sold, indicating that the decline is overwhelmingly attributable to Lancia itself.
Looking ahead, Lancia intends to introduce a new midsize model, the Gamma, in 2026, with the Delta also slated for a comeback later in the decade. However, the existing Ypsilon faces stiff competition from popular models like the Peugeot 208 and Opel Corsa, which are also part of the Stellantis group. The struggle of Lancia, coupled with a 22.5 percent drop in sales for sister brand DS Automobiles, raises questions about the long-term viability of some Stellantis brands, a concern reportedly under evaluation by Stellantis CEO Antonio Filosa.
The automotive industry is in constant flux, demanding perpetual innovation and strategic adaptation. Lancia's current struggles offer a poignant reminder that heritage alone cannot guarantee success in a fiercely competitive market. To truly thrive, brands must not only honor their past but also embrace the future with compelling products and a clear vision. The path to resurgence requires resilience, creative solutions, and a deep understanding of evolving consumer demands. For Lancia, the forthcoming models will be crucial in demonstrating its capacity for renewal and reclaiming a prominent position in the European automotive landscape.
