After shrinking to just one model in its home market, the 117-year-old brand, part of Stellantis, also has plans for a midsize crossover in 2026 and a compact hatchback in 2028, both fully electric.

The new Ypsilon will initially be presented as a fully-electric, limited edition version of 1,906 units, Lancia said in a newsletter.

The car will go on sale in Italy before summer next year and will also be available in a mild-hybrid version. Sales in other European markets will follow.

The new Ypsilon will be built in Zaragoza, Spain, on the same platform as several other Stellantis models, including the Jeep Avenger, Fiat 600, Peugeot's 208 and 2008 and Opel's Mokka and Corsa.

(Reporting by Giulio Piovaccari; Editing by Kirsten Donovan)