The Italian brand, famous for its rally success, has been absent from the sport for years. Now, they've unveiled the Ypsilon Rally 4 HF, a race-ready version of their new small car.

The Ypsilon Rally 4 HF is an entry-level rally car that costs €74,500 ($80,600). It's got a 1.2-liter turbo engine that pumps out 212 hp. The car is front-wheel drive and comes with a five-speed manual gearbox and a limited-slip differential.

Lancia brought in some serious expertise to develop the Ypsilon rally car. They've got Miki Biasion, an Italian rally legend, helping out. Biasion knows a thing or two about winning in Lancias. He won the European Rally Championship in 1983 driving a Lancia 037 and grabbed two World Rally Championships in 1988 and 1989 with the Lancia Delta Integrale.

At the car's launch, Biasion said:

"If you dreamt of track as a child, you dreamt of Ferrari, but if you dreamt of becoming a rally driver, then you dreamt of Lancia. The Lancia legacy of victories and racing is back and I am happy to be a part of it."

The Ypsilon Rally 4 HF will be available for rally events all over the world. Lancia's also setting up its own race series called the Trofeo Lancia Rally. It'll be part of six events in the 2025 Italian Rally Championship. There's a big prize pool of €300,000 ($325,000) up for grabs. The top prize? A chance to drive the Lancia Corse HF team's official Ypsilon Rally 4 HF in the 2026 European Rally Championship.

Lancia's not just stopping at the rally car. They've also got an electric hot hatch version of the Ypsilon coming out. The Ypsilon HF will have a 280 hp electric motor and can go from 0 to 100 km/h in 5.8 seconds. It'll be the most powerful of Stellantis's small electric cars when it goes on sale in Europe next spring.

Source: Lancia