Lancia going back to Australia? Iconic Italian brand will revive the Delta name and go electric

The aging Ypsilon will be replaced by an all-new model at the end of this decade.

Lancia will release three new models as part of the Italian brand's revival, right-hand drive on UK and possibly Australia karts.

In the interview Automotive News EuropeLancia CEO Luca Napolitano said the once iconic automaker will expand its lineup and market presence in parts of Western Europe in 2024, after selling just one model, the Ypsilon light hatchback, in Italy alone in the past four years.

Under the umbrella of the huge Stellantis group, which includes Jeep, Chrysler, Maserati, Peugeot, Citroen and Opel, Lancia has been grouped with Alfa Romeo and DS in the group's premium brand cluster.

The new Lancia models include the replacement of the aging Ypsilon, which is based on the same principles as the Fiat 500 and Panda. The next generation Ypsilon will be produced using the Stellantis small car platform, possibly the common modular platform used at the heart of the Peugeot 208, the new Citroen C4 and the Opel Mokka.

It will be available with an internal combustion powertrain with a 48-volt mild hybrid system, as well as a battery-electric propulsion system. Mr. Napolitano told the publication that the next Ypsilon will be Lancia's last internal combustion engine model, and all future models will be exclusively electric vehicles.

The second model will be a compact crossover, possibly called the Aurelia. Automotive News Europe, which will appear in Europe in 2026 as the flagship model of Lancia.

This will be followed in 2028 by a small hatchback that will revive the famous Delta nameplate.

Mr Napolitano said Lancia's market expansion will start with Austria, Belgium, France, Germany and Spain in 2024, followed by the UK.

Lancia is addressing its past by bringing back the Delta nameplate for a new hatchback in 2028.

Lancia withdrew from the UK market and RHD production in 1994 due to low sales. Lancia returned to the UK but under the Chrysler brand with Delta and Ypsilon in 2011 before Chrysler pulled out of that market entirely in 2017.

Lancia last entered the Australian market in the mid-1980s with models such as the Beta coupe.

Since then, there have been several attempts to revive Lancia in Australia. In 2006, independent importer Ateco Automotive considered adding Lancia to its portfolio, which also included Fiat, Alfa Romeo, Ferrari and Maserati.

Former Fiat Chrysler Automobiles CEO Sergio Marchionne stated in 2010 that Lancia would return to Australian shores, albeit with Chrysler badges. None of these plans came to fruition.

Cars Guide reached out to Stellantis Australia for comment on the possibility of bringing the brand back to the market. 

The third generation Lancia Delta was discontinued in 2014.

According to the report, Mr. Napolitano said that Lancia will provide "understated, pure Italian elegance with soft surfaces and excellent quality." Former PSA Group Vice President of Design Jean-Pierre Ploux was commissioned to design the Lancia.

Mr. Napolitano said the target buyers for the new Lancia would be brands such as Tesla, Volvo and Mercedes-Benz's all-electric EQ range.

At least in Europe, Lancia will switch to an agency sales model similar to that of Honda and Mercedes-Benz in Australia.

In a traditional franchise model, a dealer buys cars from a car manufacturer and then sells them to customers. In the agent model, the manufacturer maintains inventory until the car is sold to a retail agent.

The original Delta five-door hatchback was produced throughout the 1980s and 90s, finding success on international rally circuits with options such as the Delta Integrale 4WD Turbo before being discontinued.

Lancia released the third generation Delta with an unusual design in 2008 and it was mechanically linked to the Fiat Bravo. The hatchback/wagon cross between the Delta was discontinued in 2014.