
The Italian government is considering a €930m plan to encourage people to give up their petrol or diesel cars and buy electric vehicles instead.
The package, under discussion by the Ministry of Industry, will include financial incentives worth up to 13,750 euros to allow citizens with an annual income of less than 30,000 euros to remove their gasoline or diesel models, which are more than 20 -year, in favor of new models of electric vehicles.
The objective is to change Italy's vehicle fleet, which is one of the oldest in Europe. The plan will also support low-income families and the purchase of locally produced vehicles. The plan will be presented at a meeting with representatives of the automotive sector on February 1.
New vehicle registrations in Italy increased by 19% in 2023 to around 1.57 million, according to data published by the Ministry of Transport. Italy's electric vehicle market share is lower than in other major European economies.
At the same time, after years of sales growth, signs of electric vehicle adoption in Europe are spreading more slowly. Audi is canceling its plans to distribute electric vehicles to avoid burdening factories and dealers amid slower sales growth. In October, the chief financial officer of Mercedes-Benz Group AG described the competition in the electric vehicle space as 'brutal' and unhealthy.
The European Union is unlikely to meet its end-of-decade targets for electric vehicles unless the bloc improves its industrial policy and automakers fail to roll out cheaper vehicles soon, according to analysts.