Stellantis NV is planning to add a second lower-priced electric vehicle to its arsenal to compete with Renault SA and Chinese carmakers as consumers look for more affordable EVs.

The new EV — a no-frills Fiat Panda-inspired model for less than €25,000 ($27,347) — will be unveiled in July 2024 to take on Renault’s Dacia Spring, Fiat brand Chief Executive Officer Olivier Francois said in an interview.

“There’s a real need for more affordable EVs,” Francois said.

Stellantis, the parent company of Fiat, also plans to start selling an EV city car from its French brand Citroen priced below €25,000 early next year. That car, an e-C3, will be made in Slovakia to keep a lid on costs and better compete with the Dacia Spring that’s assembled in China and the upcoming all-electric made-in-France Renault 5.

The plan comes as carmakers battle to retain mass-market buyers, who have seen their spending power diminished by inflation. And with Chinese carmakers entering Europe’s market, the pressure to deliver affordable EVs is increasing. Fiat also plans to reintroduce its most popular product, the electric 500, in the US, Stellantis’s biggest profit pool.

For the new electric Panda, “it’s very likely that there will be synergies” with the platform used for the new Citroen e-C3, Francois said.