2025 Lancia Ypsilon HF

The Lancia Ypsilon HF marks an intriguing but uncertain comeback for the storied Italian brand. Invoking the legendary HF rally heritage is a bold move for an electric hot hatchback, and the approximately 240 horsepower from the electric powertrain provides respectable performance. The Torsen limited-slip differential is a welcome inclusion that should improve traction and handling dynamics. The design blends Italian flair with modern sensibility, and the interior aims for a level of luxury unusual in the segment. However, Lancia faces significant challenges: the brand has been dormant in most markets for years, dealer networks are virtually nonexistent outside Italy, and the Ypsilon HF must compete against established electric hot hatches from MINI, Abarth, and Cupra. The 250-mile range is competitive, but real-world driving impressions remain limited. At around 40,000 euros, it is priced ambitiously for a brand rebuilding its reputation. The Ypsilon HF has the potential to be a charming and distinctive choice, but Lancia must execute flawlessly to justify the premium.