Mobility Portal, Spain
Date: January 4, 2024
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By Mobility Portal
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Italy could allocate €930 million to boost EV purchases. Justified measure?

The government of Italy is considering the launch of an economic incentive for citizens with annual incomes below €30,000 to acquire a domestically made EV. What percentage of society would benefit from this?
Fiat 500e electric vehicles (EVs) Italy
The domestic Fiat 500e is sold for an approximate sum of 29,300 euros.

The authorities of the government of Italy are considering allocating 930 million euros to encourage sales of domestically produced electric vehicles (EVs), according to sources.

Specifically, one of the main objectives of the plan is to encourage lower-income families to embrace electromobility.

The proposed financial incentives would have a value of up to 13,750 euros to enable citizens with annual incomes below 30,000 euros to transition from a traditional combustion engine personal vehicle to a pure electric model.

It’s worth mentioning that the average salary for Italian workers is approximately 27,000 euros gross per year, which translates to around 2,250 euros gross per month, according to the annual report from the Istituto Nazionale di Statistica (ISTAT) published on July 7, 2023.

If the implementation of the program is approved, a large percentage of society would benefit, and consequently, the electric vehicle market in Italy would see growth.

In this regard, the plan also aims to “change Italy’s vehicle fleet, which is one of the oldest in Europe,” according to a spokesperson from the Ministry of Industry.

The truth is that Italy has EV registration numbers that are low compared to other countries in the region.

However, the figures from last year are overall positive.

Between January and September 2023, the domestic Automobile registrations in Italy reached a volume of 1.56 million units.

It marked a 19% increase compared to the 1.31 million units sold through the year 2022, although more than 350,000 cars below (-18.3%) the records of 2019, before the pandemic.

On the other hand, there was a 27.5% increase in EV registrations. These figures surpass the total numbers of the general automotive industry.

However, this puts EVs at a mere 3.9% of the total percentage of vehicle sales in the first nine months of 2023.

On the other hand, PHEV registrations reached 4.5%.

It is worth noting that the plan includes incentives for the purchase of locally-made vehicles.

This is because the electric vehicles most appealing to the Southern Italian public are mainly of foreign production.

During 2023, the best-selling EV in Italy was the Tesla Model Y.

During 2023, the best-selling vehicle was the Tesla Model Y, which recorded 8,587 units, according to data from the Unione Nazionale Rappresentanti Autoveicoli Esteri (UNRAE).

The second place is also held by the American Tesla with its Model 3, as 7,385 vehicles of this car were registered.

Far behind, the podium is completed by the locally-made Fiat 500E, with 4,749 registrations.

In fourth place is the Smart ForTwo from the German Mercedes Benz, which sold 4,639 units.

Completing the top 5 is the Dacia Spring, of Chinese origin, chosen by 2,267 buyers.

Finally, it is worth noting that the details of this project, driven by the Ministry of Industry, are outlined in a document that will be presented on February 1 in a meeting with representatives from the automotive sector.

How much do the most popular EVs cost in Italy?

The prices of Tesla cars, which lead the EV market in the country, are among the highest.

While the Tesla Model Y can be obtained for 47,978 euros, the Model 3 has an approximate cost of 42,490 euros.

Considering the average salary in Italy, these prices suggest that the majority of the EV users have a relatively high purchasing power.

On the other hand, the domestic Fiat 500e is sold for an approximate sum of 29,300 euros.

The model offered by Mercedes Benz, the Smart ForTwo, has a cost of 25,210 euros.

Finally, the Asian model Dacia Spring is the most affordable, as it can be acquired for an amount ranging from 21,450 to 23,200 euros in Italy.

Read more: Thousands of charging points for Italy: These are the announced projects”

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