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Sarajevo Times > Blog > WORLD NEWS > Yugo is coming back: Here’s what the new Model will look like
WORLD NEWS

Yugo is coming back: Here’s what the new Model will look like

Published January 30, 2026
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The former national car of the former Yugoslavia, the pride of the then Yugoslav auto industry and once a successful export product is now returning in a completely new edition.

Zastava’s Yugo, which today enjoys cult status, first appeared on the roads almost 45 years ago, and based on adapted Fiat 127 technology, it even reached the United States (U.S.) market, where it attracted great interest when it went on sale for just 3.990 dollars. However, due to poor quality and unreliability, it soon became a synonym for failure.

Nevertheless, its production lasted a full 28 years – until 2008. In the meantime, Yugo became a pop culture icon, especially in the U.S., where several books were written about it and it appeared in numerous films. Its recognizability is still high, and there is also a strong fan base of this legendary model in Serbia.

Now Yugo is returning as a completely new car, and the first sketches have already been released. The presentation of the design model is expected this year, while the final prototype should be presented in 2027 at the Expo exhibition in Belgrade.

The project leader is Prof. Dr. Aleksandar Bjelic, known for his work in the German automotive and supply industry. He has secured the rights to the international trademark of the brand, and the design of the new Yugo is signed by Serbian designer Darko Marceta. His initial drawings have successfully conveyed the proportions and the recognizable spirit of the original model.

The new Yugo will be a small, affordable car, available exclusively in a two-door version. Its technical basis will be the platform of an established industrial partner, but Bjelic has not yet revealed which company it is. What is certain is that the car will be modern, economical, and compliant with all safety standards.

Although an electric version is planned for the future, the new Yugo will initially be launched with a classic internal combustion engine. This decision was made for practical reasons – lower price and greater driving pleasure. In this way, Yugo will stand out from other retro models such as the new Renault 5 or VW ID Buzz.

In addition to the development of the car, Bjelic is also planning an endurance rally, which should start next year from the factory in Kragujevac, through Africa, all the way to Kilimanjaro. This adventure is a modern version of the expedition from 1975 when five Zastava 101s successfully crossed the same route.

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