For those who desired a more discreet, comfortable, and luxurious ride, the LX (with an Alcantara and walnut veneer interior) and LS were also available with SuperFIRE.

The Italian magazine Quattroruote test drove the "Ypsilon 16V LX" beyond its usual city use and praised its excellent power reserves while offering the comforts of a car worthy of a higher price.

The external changes included a new, larger grille, new bumpers, new taillights, new wheel cover designs, new fog lights.

The most significant internal change was the headrests (instead of drilled solids) and new seats and new steering wheel (similar to that of the Lancia Lybra).

The material was no longer available with "soft touch", reflective security was removed from the doors, the climate control button was replaced with a lever, and the instrument panel was made more readable and modern, especially in the use of the LED display.

The bumpers are characterized by the presence of an unpainted longitudinal fascia applied above the air intakes in which the fog lamps (in the top versions) are located at either end.

The new Ypsilon can be equipped with Electronic Stability Control and hill holder for an extra charge, and has a grip of 0.93 g, although the roll is accentuated due to the soft suspension calibration.

It derives directly from a concept called Ypsilon Sport,[22] presented at the Geneva Motor Show in 2005 and developed in collaboration with Zagato Design Centre.

In May 2008, as in 2006, the limited edition makeover ModaMilano returned[24] with colour changes (TOP color Borromini Grey), bi-colour multi-spoke wheels, chrome trim and leather-covered dashboard instrument dome.

Since 2009, the Ypsilon Versus was a limited edition of just 1,000, designed by Versace,[25] with Bronzino Bronze bodywork, dedicated interior and greenhouse, and 16-inch Sport darkened wheels.

The first drawings of Type 846 were developed in late 2006 and early 2007 by the Lancia Style Centre, directed by Alberto Dilillo,[29] before the Fiat/Chrysler alliance.

All models were equipped with standard four airbags and stability and traction control (ESP and ASR) with Hill Holder, and ABS with EBD.

At the 2011 Frankfurt Motor Show, Lancia debuted Ypsilon Diamond concept cars,[35] which anticipated the release of a luxury model.

The Diamond features two-tone paint with a top layer called "eco-chrome" covering pillars, roof, hood, and mirrors.

The outside of the seats, dashboard and some door details are covered with Nubuck light-colored leather with shift knob made of transparent acrylic to get the diamond effect.

The Ypsilon Black&Red is sold in most markets (including UK and Ireland[37]) with 1.2 Fire petrol engine, 0.9 TwinAir Turbo and 1.3 Multijet diesel.

The engine range consists of the 1.2L eight-valve Fire petrol capable of 69 PS (51 kW; 68 hp), already present on the previous version and coupled to a 5-speed manual gearbox.

The diesel engine is the classic 1.3 L Multijet 16 valve 95 PS (70 kW; 94 hp) with a DPF capable of emitting 99 g/km of CO2 and is mated to a 5-speed manual transmission.

Premiered at Frankfurt International Salon, the new Ypsilon brings a redesigned front end with a different lower bumper, featuring a horizontal bar, and new, wider, grille.

[38] Inside, the UConnect infotainment system with a 5-inch LCD touch screen debuts, while the basic versions introduce a new DAB radio.

In March 2020 Lancia introduces the Ypsilon EcoChic Hybrid powered by the GSE FireFly 1.0-liter, three-cylinder gasoline engine with an output of 70 metric horsepower (51 kW; 69 hp), coupled to a 12-volt BSG (belt-integrated starter generator) electric motor.

The 3.6 kW (5 hp) electric motor draws power from a small 0.13 kWh lithium battery and the vehicle should reduce fuel consumption and emission by as much as 24 percent when compared to its non-hybrid counterpart.

[41] In 2021 Stellantis gave the car a grille with vertical strips according to the Lancia tradition and updated headlights with new daytime running lights.

[43][44] It is based on the CMP / eCMP platform, sharing multiple parts with the Peugeot 208 II and the Opel Corsa F.[45] The Ypsilon is the first Lancia production vehicle to adopt their Pu+Ra Design language ('Pu+Ra' is a combination of ‘pure’ and ‘radical’) and the brand's new logo, which were both previewed from the Pu+Ra HPE concept car in 2023.

The Ypsilon features an illuminated version of the historic front grille with three light rays, round headlights and taillights that both feature a letter Y motif, a Lancia badge on the C-Pillar and the Ypsilon badge on the rear hatch, having handwritten characters inspired by historic Lancia models.

(Sound Air Light Augmentation) infotainment system with virtual assissant, it has a multifunctional "tavolino" table with a wireless charging pad and a leather panel embossed with the Cassina special edition logo first seen in a production vehicle, and the only car in its segment to be equipped Level 2 Autonomous Driving safety package.

The HF model has a front-mounted electric motor producing 240 PS (177 kW; 237 hp), a lower suspension, a widen wheel track and sportier exterior styling.

During the presentation, Carlos Tavares, the CEO of Stellantis talks about the beginning of Lancia's return to rally competitions, particularly in the WRC.

A marketing and brand relaunch operation, but with a limited investment, as private teams will also take advantage of the components and work experience gained for the Peugeot 208 Rally4 and the Opel Corsa Rally4.

[56] On 16 July 2024, the two-time world rally Lancia champion Miki Biasion also carried out a special test with the car.