UPDATE 1-Stellantis' Lancia unveils fully electric Ypsilon for new push outside Italy

(Adds Lancia CEO comments in paragraphs 4-5, 9 and 11)

MILAN, Feb 14 (Reuters) - Lancia on Wednesday revealed its new Ypsilon compact car, the first of three new models promised by the premium brand as part of a multi-year relaunch plan under which it will again sell vehicles outside its Italian home market.

After shrinking to just one single model sold only in Italy, the 117-year-old brand, part of Stellantis, also has plans for a midsize crossover in 2026 and a compact hatchback in 2028, both fully electric.

The brand plans for its fleet to be 100% electric from 2026.

Unveiling the new Ypsilon in Milan, brand CEO Luca Napolitano said Lancia was targeting clients of Audi and Mini.

"I look at those brands with huge respect," he said. "But I am not afraid to say that, in Italy, we look at their clients for Audi A1 and Mini".

Initially presented in its battery-electric (BEV) version with a 51 Kwh battery giving a range of up to 403 kilometres (250 miles), the new Ypsilon will go on sale in Italy before summer in a limited launch series of 1,906 units signed by Italian design furniture maker Cassina.

It will cost 39,500 euros ($42,270), including VAT but excluding government purchase incentives. Prices are expected to be lower for full-series versions of the car, which will also be available in a hybrid model in a few weeks.

The new Ypsilon replaces a current version of the car, which is cheaper and slightly smaller, and sold almost 45,000 units last year.

"It's different, in a different segment," Napolitano said.

Sales of the new Ypsilon in other European markets will rely on a network of 70 dealers in major cities, Lancia said in a statement. They will start from Belgium and the Netherlands in mid-2024, with France and Spain following and Germany scheduled for 2025.

The aim is to make 80% of Ypsilon's sales in Italy and 20% abroad, the CEO said.

The new car will be built in Zaragoza, Spain, on the same platform as several other Stellantis models, including the Jeep Avenger, Fiat 600, Peugeot's 208 and 2008 and Opel's Mokka and Corsa.

($1 = 0.9344 euros) (Reporting by Giulio Piovaccari; Editing by Jan Harvey and Bill Berkrot)