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Italy’s New Electric Car Incentives: A Boost for a Stagnant Market

In Italy, sales of electric cars are not taking off and their market share is stuck at 4.2%. This is why there is great anticipation for the strong incentives that Minister Adolfo Urso is preparing to launch, which are particularly relevant for those who buy this type of car. However, operators in the supply chain fear that the announcement effect itself could have negative consequences on the start of the market in the new year.
Meanwhile, 2023 ends with 1,566,448 car registrations, 18.96% more than 2022. An apparently positive figure, but as highlighted by the Centro Studi Promotor, in reality there was “a drop of 18.3% compared to 2019, that is, on the year before the pandemic and all the other negative events that accompanied it. In absolute terms, compared to 2019, 1,944,794 fewer cars were registered in the four-year period 2020-2023”. In December, 111,136 were sold with a growth of 5.9% on the same month of the previous year.
The government study incentives in the case of “full electric” cars start from 6,000 euros and reach 13,750, if you scrap a Euro2 car and have an ISEE under 30 thousand euros, while the help for the purchase of a hybrid vehicle ranges from 4 to 10 thousand euros, and that for a low-emission car from 1,500 to 3,000 euros. These are not yet official numbers, but hypotheses contained in the working draft for the renewal of car incentives on which the government aims to use resources of 930 million, adding 570 million of new funds for the automotive sector and what remains unspent of the old incentives.
The intervention also concerns commercial vehicles, taxis and long-term rentals. 50 million is expected for leasing. The merits of the provision will be discussed with the automotive roundtable convened by the Ministry of Business and Made in Italy for Thursday 1 February 2024. During the meeting, chaired by the minister Adolfo Urso and with the main representatives of the companies in the sector, in addition to the organizations of the supply chain, “the new incentive plan for the automotive sector soon to be activated will be illustrated”.
The draft car incentives indicate among the objectives to be achieved: 1) change the car fleet circulating in Italy, which is one of the oldest in Europe (over 11 million Euro 3 or lower cars); 2) support and support less well-off families (25% extra bonus for ISEE 30 thousand euros); 3) remodulate the incentive tools to stimulate the purchase of cars actually produced in Italy.
An important boost to the market given that, according to the president of the Centro Studi Promotor, Gian Primo Quagliano, “the recovery from August 2022 is running out and the car market is entering a substantial and not short-lived stagnation with the prospect for the 2024 with a volume of registrations aligned with that of 2023, i.e. 1,573,000 units”.
In 2023 Stellantis sold 591,156 cars in Italy, 10.5% more than the previous year, with a market share of 33.5% against 36.3%, but in December there were 36,833 registrations, in decline of 4.6% compared to the same period of 2022. The group also maintained leadership of the Italian market in 2023 and recorded a share of 25.1% among electrified vehicles (cars plus light commercial vehicles), “confirming the leading role in the national energy transition”. Tesla triples volumes in one year, the Chinese Mg multiplies sales by four and comes close to 2% market share.

Read the full article on ANSA.it
2024-01-02 19:28:00
#Electric #cars #stuck #market #incentives

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