Yugo Is Back. Here's What Its First Concept Looks Like

Yugo hopes to put its tiny hatchback into production by 2027.

Yugo Concept Scale Model

Photo by: Yugo

Jeff Perez

By: Jeff Perez

May 6, 2025 at 2:30pm ET

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Yugo announced an official comeback in February, with plans to produce a small hatchback similar to what the company built throughout the 1980s and 1990s. But our only indication of the brand's return was a shadowy teaser showing the vehicle's silhouette and a few grainy renderings. Finally, though, we get our first official look at Yugo's new car—albeit in scale model form.

At the Car Design Event 2025 in Munich last month, Yugo lifted the very tiny sheet on its first scale-model concept. The concept doesn't have a name, but it looks lovely. The two-door hatchback offers shades of original Yugo models with its compact footprint, boxy profile, and flat, minimalist surfacing. But of course, with all the modern cues you expect of a vehicle produced in 2025.

Yugo Concept Scale Model

Photo by: Yugo

The scale-model concept was sculpted by Serbian designer Darko Marčeta under the guise of Yugo's new owner, Professor Dr. Aleksandar Bjelić. Yugo told Car Magazine that the new concept, ‘does not just serve as a historical reminiscence, but underscores the affordability and the sportiness of the new model.'

If this new Yugo makes it to production—which the company hopes to achieve in the next two years—it would compete in the subcompact hatchback market in Europe. Think, Citroen C3, Renault Clio, Volkswagen Polo, etc. But it's extremely unlikely that the Yugo brand ever makes its way back to America.

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Yugo says it will offer naturally aspirated gas and turbocharged versions of its new hatchback, with an EV option possible. It will be available in both automatic and manual versions, and the company even hinted at a possible performance version, which we could get more details on later this year.

But a fully functioning Yugo prototype is still a few years off. The company says that a prototype should debut Belgrade Expo in 2027, with production slated to kick off that same year.

Yugo Concept Scale Model