Can an affordable electric car save Fiat? Why the 2023 500e is the final hope for the Italian brand in Australia | Opinion

Australia is one of the most competitive new car markets in the world, which means not all brands can survive. In recent years we’ve seen the likes of MG and Haval enter (or re-enter) the local scene, while Holden and Chrysler have bowed out.

It’s in this context that we look at Fiat, the storied Italian brand that is currently eking out its survival on the back of one, very old model. The current Fiat 500 arrived in its current form as a 2016 mid-life upgrade on a city car that first launched way back in 2007. 

That means the current model can trace its roots back more than a decade, so it’s hardly surprising that the 500 has slowed in the sales charts, with just 297 sales in the first half of 2022 (according to the data supplied by the Federal Chamber of Automotive Industries).

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That’s a 31 per cent decline on pre-pandemic levels, but Fiat Australia’s line-up hasn’t fared any better. Back in 2019 the local range consisted of the various Fiat and Abarth 500 models as well as the 500X compact SUV and the Mazda MX-5-based Abarth 124 Spider. Both of the latter two models have disappeared without replacement; the 500X remains on sale in some markets but the 124 Spider was discontinued in 2021.

This decline in both volume of models available and vehicles sold raised legitimate questions around the future of Fiat in the Australian market. It didn’t get any better when previous requests for comments on the future of the brand weren’t met with any definitive statement of future plans.

However, that changed in May when the brand’s spokesperson confirmed that the all-new, all-electric 500e would be headed down under in 2023. This was a big announcement, not only securing the future of the brand (at least in the short-term) but also potentially shaking up the brand’s image and the electric car market.

While no local details have been announced, including specifications or price, the fact that the 500e sells costs the equivalent of $A35,000 in the right-hand-drive UK market opens the door to speculate that this new Fiat could become a price-leader in the electric car space.

The current cheapest electric car in Australia is the $44,381 BYD Atto 3, so that’s the target that Fiat Australia must aim at. Whether the company succeeds or not remains to be seen though…

What we do know from overseas is that the 500e is bigger, more advanced and available with more safety features than the petrol-powered model it replaces.

The new machine is powered by an 87kW electric motor that drives the front wheels paired with a 42kWh lithium-ion battery. It provides up to 320km of driving range when tested on the WLTP standard.

It’s also available with an 85kW fast charging system, which can top up 50km of range in five minutes and 80 per cent in 35 minutes under the right circumstances.

In terms of size, the 500e is 60mm longer, 60mm wider and has a 20mm longer wheelbase than the outgoing 500.

To keep up with modern demands for safety the new 500e comes very well equipped, with Level 2 autonomous capabilities thanks to adaptive cruise control, lane-keeping assist, traffic sign recognition, blind-spot monitoring and surround-view cameras; although obviously it’s too early to know if this will be available in Australia and on which variants.

However, the fact this larger, more advanced 500e is coming our way opens the door for Fiat to reinvent itself and the 500 nameplate (which, to be frank, are one and the same thing in the local market) in Australia, especially considering the rise and rise of prices for small cars.

The once price-conscious Toyota Yaris now starts at $23,740 before on-road costs and extends all the way to $32,200 for the ZR Hybrid. And the Toyota is far from alone in being a small car with a big price.

The Skoda Fabia Monte Carlo now costs a significant $37,990 (driveaway), the entry-level Mazda2 begins at $21,390 and the Volkswagen Polo range kicks-off at $25,250.

The current 500 range begins at $19,550 for the Lounge model and stretches to $22,250 for the Dolcevita variant. The sporty Abarth 595 range runs from $34,260 all the way to $44,950 for the 695 70th Anniversario edition.

Which is a long way of saying, people are willing to pay a premium for the tiny Fiat, as long as it offers something special. And the 500e has the potential to be something special, offering a city-friendly electric car for those who want something environmentally friendly with some Italian style and flair.

Perhaps the closest comparison for the 500e would be the new electric Mini, which is priced from $55,650 for the three-door SE Classic. If Fiat Australia can get the 500e into showrooms with a price beginning with a four then it has a chance to revive the brand’s dwindling fortunes in this country. 

But if it isn’t a sales success Fiat may face the same fate as Chrysler, so there’s a lot of pressure riding on the back of this tiny car…