Yugo returns: compact hatchback concept unveiled

By: Volodymyr Kolominov | 07.05.2025, 07:46
Revolution on wheels: the new Yugo is back in the game The Yugo modern hatchback model.. Source: Yugo

The official return of the Yugo was announced in February: the company plans to produce a small hatchback in the spirit of models that were produced in the 1980s and 1990s. Until recently, the future car was only hinted at by a dark silhouette teaser and a couple of blurry renders. But now the design has been declassified thanks to a scale model.

Here's What We Know

At the Car Design Event 2025 held in Munich, the company lifted the veil of secrecy by presenting a mock-up of its first concept. It has no name yet, but it looks nice. The three-door hatchback refers to the classic Yugo with its proportions and sharp lines. At the same time, the design includes modern features in the spirit of 2025.

The concept was created by Serbian designer Darko Marčeta under the guidance of the brand's new owner Aleksandar Bjelić. In an interview with CarMagazine , Yugo representatives said that the new model will emphasise affordability and sportiness.

If the project reaches the assembly line - and the company hopes to start production within two years - the new Yugo will become a member of the European B-Class. The Citroën C3, Renault Clio, Volkswagen Polo and other popular models compete in this segment.

Yugo promises atmospheric and turbocharged petrol versions of the hatchback, as well as the possibility of an electric modification. Also, the model will be available with both manual and automatic transmission. And the company has also hinted at a "charged" version, details of which may appear later this year.

However, a full-size prototype is still a long way off. Yugo plans to unveil a working prototype at the Belgrade Expo in 2027. Production is scheduled to begin the same year.

For reference: the original Yugo was a compact car built by Zastava on the basis of the Fiat 127 and 128, and was produced at a factory in Yugoslavia. It is now a territory of Serbia.

Source: CarMagazine