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Lancia launches its return to rally with Ypsilon Rally4

Lancia has officially launched its Ypsilon Rally4 car that will guide the World Rally Championship’s most successful manufacturer back to competitive motorsport.

The Italian car maker, a winner of a record 10 WRC constructors' titles (1974-1976, 1983, 1987-1992), has created an all-new Rally4 car that is set to compete in the European Rally Championship and a newly created one-make Lancia Rally Trophy competition in Italy next year.

Lancia’s return to rallying arrives 50 years after it won its first WRC title with the legendary Stratos in 1974. The brand added its fourth title in 1983 with its Group B, 037, before dominating Group A with the Delta.  

The Ypsilon Rally4 is based on the high performance all-electric Ypsilon HF, although the Rally4 version will be powered by a 1.2-litre turbocharged three-cylinder internal combustion engine that will develop 212 horsepower. It will include a five-speed mechanical transmission and a mechanical limited-slip differential.

“2025 will mark the return of Lancia to motorsport as we aim to reestablish our presence in contemporary motorsport competitions,” said Lancia CEO Luca Napolitano.

Lancia Ypsilon Rally4 (Photo by: Lancia)

“With a mix of tradition and innovation, Lancia looks to the future with passion and ambition. With 2026 set to be the year of the Gamma flagship, which will be produced in Stellantis’ Melfi factory, 2025 is dedicated to the return of the haloed HF name, which will first make an appearance on the Ypsilon and later show up on the Gamma and the new Delta with the “HF Integrale” label. 

“Whenever the HF gets mentioned, one can’t help but recall the legendary Stratos, 037, and Delta, which dominated rally racing for 20 years, winning a total 15 World Championships in Drivers’ and Constructors’ competitions - a record which has yet to be broken. 

“We have always been leaders in motorsport and rally, but now, with the trademark elegance and simplicity which sets us apart, we are making a comeback to Rally 4, the developmental category for tomorrow’s professional drivers, as we look to improve upon our past with passion and pride.”

Lancia’s new rally car is aimed at young drivers, costing €74,500 with the first models set to reach customers at the end of January. 

The car maker turned to its most successful WRC driver and two-time world champion Miki Biasion (1988-1989) to fine tune its latest rally car.

Miki Biasion, Lancia Ypsilon Rally4 (Photo by: Lancia)

“If you dreamt of track as a child, you dreamt of the red of a Ferrari. However, if you dreamt of becoming a rally driver, then you dreamt of Lancia,” said Biasion.

“I am honoured to have worked together with the Lancia and Stellantis Motorsport teams in fine-tuning the Ypsilon HF and Ypsilon Rally 4.

“I hope to inspire all the young drivers who hit the road with our Lancia Ypsilon Rally 4 HF to become professionals and future champions. The Lancia legacy of victories and racing is back and I am happy to be a part of it.” 

The car is set to make its debut in the new Lancia Rally Trophy that will be part of the Italian Rally Championship, featuring a prize pool of €300,000. The winner will then have a chance to drive the Lancia Corse HF team’s official Ypsilon Rally4 HF in the 2026 European Rally Championship.

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