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Yugo Unveils Retro-Inspired Budget Car Concept at Munich Design Event

The revived brand targets Europe's B-segment market with an affordable, ICE-powered small car, aiming to rival Dacia's success.

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Overview

  • The new Yugo concept, designed by Darko Marčeta, was revealed as a 1:4 scale model at the Car Design Event (CDE) in Munich in May 2025.
  • The vehicle will feature internal combustion engines with both manual and automatic transmission options, emphasizing affordability over electrification.
  • A sporty variant is scheduled to debut at the CDE Classic in Dietzhölztal, Germany, in September 2025, with additional technical details expected.
  • A 2026 prototype expedition from Kragujevac, Serbia, to Mount Kilimanjaro will pay homage to Zastava's 1975 endurance journey.
  • The full production model is planned for a 2027 launch, with the brand leveraging its 1980s cult status and retro design to compete with Dacia in Europe's budget car market.