The upcoming fourth-generation Fiat Panda will be one of the cheapest electric cars on the market when it arrives next year, Fiat has confirmed.

Called the Grande Panda to reflect a footprint that is larger than that of its predecessor, the new hatchback, which is closely related to the recently launched Citroën C3 and with which it shares Stellantis’s value-minded Smart Car platform, will be priced from “less than £22,000”.

This means the electric Panda will likely match the £21,990 starting price of its Citroen e-C3 sibling undercutting all but the £14,999 Dacia Spring and £8945 Citroen Ami.

At launch, the Panda will be offered with a set-up comprising a 44kWh battery and 111bhp single electric motor. It will be good for 199 miles of range. 

A hybrid powertrain, priced from under £20,000 will also be offered. Although not yet confirmed, it is expected to use the same 99bhp mild-hybrid set-up as the C3.

The production car stays true to the blocky, retro proportions of the Panda concept that Fiat revealed in February, even retaining the prominent Panda branding along its sides – a nod to its bare-bones 1980s namesake.

The minimalist, rugged look reflects Fiat’s new brand values of “strength and uniqueness” and sets the tone for the design of all upcoming models in the Panda family, including the pixel-style headlights, which were supposedly inspired by the windows of Fiat’s old Lingotto factory in Turin.

A number of cues nod to the Panda’s utilitarian roots and emphasise what Fiat calls its “UV [utility vehicle] attitude”, including the chunky front skidplate, roof rails and black lower-body cladding.

However, while the brand acknowledged the influence of the original Panda 4x4, it stopped short of hinting at plans for a four-wheel-drive version of the Grande Panda.

It’s some 0.3m longer than the previous Panda, at 3.99m, but that’s still “below the 4.06m segment average”, claims Fiat.

The five-seat cabin is as funky and vibrant as its exterior, with a colourful 10.25in infotainment screen and 10in instrument display enclosed in a Lingotto-inspired design.

Ovals are the prevailing theme, in a nod to the 1920s building’s famous rooftop test track, and efforts to reduce the weight and cost of various elements will lend an airier, more spacious feel.

Although minimalistic in its design, Fiat says it is “perfect for comfortable family living and contemporary urban mobility”.

After the Grande Panda, Fiat will expand the Panda family with a new derivative every year until 2027. This will begin with the Dacia Duster rivalling SUV and Ford Puma-sized Fastback, both of which Fiat has confirmed it is readying for production.

Importantly, the Panda family will be distinct from the rest of Fiat’s portfolio, which has the 1950s-inspired 500 at its heart, although the brand hasn’t indicated plans for any additions to that family beyond the 600 crossover and the hot Abarth versions of each.

Fiat expects to begin UK deliveries early next year, and while it’s quiet on pricing, the Grande Panda is expected to be one of the most affordable cars on sale, starting at around £15,000 in petrol form and about £22,000 as an EV.

Current Panda lives on to 2027

The current Panda, which is now also referred to as the Pandina, will remain in production until “at least” 2027, Fiat has confirmed.

It plans to boost output by 20% to cater to sustained demand, even in the baby hatch’s 13th year on sale.

A subtly updated version of the car, featuring new active safety functions, an upgraded driver’s display and a new steering wheel and touted as the “most technological and safest Panda ever” is due on sale this summer.