The New Yugo Looks Too Cool To Be A Joke

The original Yugo was always the punchline of the joke—the bargain-basement car from a strange, far-off land that always looked just a bit off. Now, though, that name is set to land on a brand new hatchback. Only, this time, it’s apparently going to be cost-conscious and fashionable, if such a thing is possible.

The Autopian published an exclusive earlier this year announcing that the Zastava Yugo was to be resurrected. Not in its original form, of course, but reimagined as something thoroughly modern. The project is helmed by Prof. Dr. Aleksandar Bjelić, an engineer with decades of experience in the German auto industry. Armed with the rights to the Yugo name, he’s set about the mighty task of bringing an affordable small car to market.

Thus far, all we’ve seen are sketches and concept drawings. At the Car Design Event 2025 in Munich, however, we were treated to our first look at a scale model of the new car. You might have expected an awkward Eastern European microcar with oddball looks, but Yugo presented anything but. What we got was a sharp, modern looker that’s more than trendy enough for today’s roads.

The front end is perhaps the most striking design feature. The linear LED lighting design feeds into a glowing Yugo logo, front and center—instantly drawing the eye to the all-important branding. Meanwhile, from the side, it’s a well-proportioned two-door, with sharply raked windscreens front and rear. Combined with a few select trim pieces and an excellently-fitted wheel and tire package, and it’s got looks befitting a proper hot hatch.

Design-wise, there’s a lot to like. It’s future-forward, yet with an unmistakably retro feel. Some of the elements hit on the same popular tropes as the Rivian R3. You could make easy comparisons to the classic Volkswagen Golf or Lancia Delta. One might credit Serbian designer Darko Marčeta with excellent taste when it came to developing the model. The compact bodystyle might feel like a throwback, but the company notes that it “does not just serve as a historical reminiscence, but underscores the affordability and the sportiness of the new model.”

It’s worth noting, though, that there are some odd lines on the car. The bottom line on the doors sits lower than those of the fenders, and the rectangular front grille is a little ungainly. Ultimately, though, these are minor quibbles, and some may be tweaked before the model reaches production.

[Editor’s Note: I’d like to note that red line at the front and rear, which calls back to the rakish red stripe Yugo bumpers had. I always liked that odd detail on the original, and I’m happy to see it referenced here. – JT]

While the design is firming up, we only have limited information on the drivetrain. Yugo notes that the new hatch will launch with naturally-aspirated and turbocharged engines, with both manual and automatic transmissions. The company has also stated an electric version is possible, though it’s not yet determined if this is on the cards. Most excitingly, as reported by Car Magazine, details will be forthcoming on a performance variant in September this year.

We’re currently told that a prototype Yugo is planned to debut at the Belgrade Expo in 2027. Production is slated to begin that year, though there is no word as yet to where that might happen.

Right now, the Yugo project is an exciting one. The nascent rebirthing effort has a slick design and a very memorable name to work with. All that remains is the enormous challenge of taking those grand ideas and turning them into a company and factory that is capable of mass producing actual automobiles. Given how good this thing looks, though, there will be a great many enthusiasts cheering on the return of Yugoslavia’s prodigal son.

Image credit: Yugo