Ecobonus: France accelerates on car incentives, Italy remains dry

The Elysée extends the incentive for full hybrids, mild hybrids and traditional low-emission cars until July 2021. In Italy, on the other hand, the financing has ended on all the cars most accessible for motorists, to modernize the fleet and support ‘economy

There can be two in one mistake. The European automotive sector now risks the backlash of a second wave of pandemic without having found a balance to the crisis caused by the first. In Italy, indeed, doing further damage. Some interventions put in place to remedy do not succeed, and rather aggravate the stagnation prior to Covid-19. Elsewhere, however, we think. France is preparing to extend state purchase financing until July 2021, with a complete support plan, because the 7,000 euro bonus provided for electric cars is accompanied by that of 2,000 for plug-in hybrids. We had already told it in March 2020 how it was necessary to have targeted incentives towards the lower segments of the market, those more accessible for everyone, those below 25,000 euros, full hybrid or mild hybrid cars with low consumption and low emissions. If you want to quickly refurbish a fleet full of very polluting 1-2-3 Euros, you can’t hope to do it with electric or plug-in ones worth 40 or 50,000 Euros. For this reason, the incentives put on “normal” cars were few while those on electric cars were perhaps too many for the potential and possibilities of the Italians.

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It is no coincidence that at the Elysée they understood well the need to support the demand for greener cars, but within everyone’s reach, and therefore provides up to 5,000 euros for the purchase of cars with full hybrid, mild hybrid or even a traditional engines, provided they are updated to the latest emission reduction standards. In France it is clear that there are two problems, and so have the correct answers. Indeed, it is right to incentivize car innovation in a radical way, but not without taking into account the income of potential customers, and not even the sustainability of the entire economic system. It goes without saying that in our country only the eco-bonuses for electric cars and plug-in hybrids remain funded which are respectively in the 0-20 g / km and 21-60 g / km emissions band. For full hybrids, mild hybrids and traditional cars with emissions between 61 and 110 g / km, which is the range of cars most affordable for many, there is no money left. In short, the best way to rejuvenate the park is this and at the same time it supports the economy in a targeted way.

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Income on tap

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At races, you never focus on the best combed horse, but if anything, on the winning one. This then is even a run-up, not a fashion show. The association of European car manufacturers, Acea, is neutral with respect to electric, hybrid and any technological solution capable of transforming cars. Rather, it does the math rigorously. In the second edition of the report “Making the Transition to Zero-Emission Mobility”Blatantly indicated the direct relationship between the diffusion of the electric car and the per capita income of citizens of the individual countries of the Union. In 2019, all nations with a value of less than 30,000 euros were able to guarantee battery-powered cars a market space of no more than 1%. Like Italy.

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80% of the electric cars sold in the EU took the route of just 6 countries. In 2020, we continue to think about a patchy revolution. In the third quarter of 2020, mild hybrids and full hybrids in Europe collected an 88.8% growth, with 341,092 cars sold, for a share of 12.4%: the effect of state measures to support the sector has been seen well. Electricity increased by 132.3% over the period, up to 135,461 deliveries, but if at the moment they are incentivized in 20 EU member countries, the effects are more local than global. In Italy, in the month of October, they reached almost 2% of the market, with 2,889 registrations.

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Europe all try

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According to Fitch analysts, the second wave of the pandemic is likely to put the auto industry in front of a drastic drop in world production, up to 25% in 2020 and a further -10% in the first half of 2021. To respond to an enemy of this scale, the sales to focus on, to encourage, can only be mass. It is a social issue, not just an environmental one. The Old Continent currently hosts a total of 298 vehicle manufacturing plants and engine assembly plants. Of these, 142 for the construction of passenger cars, 28 for light commercial vehicles, 58 for heavy transport vehicles, 58 for buses and others with mixed production lines. In Germany alone there are 42, in France 31 and in Italy 23, while Russia has 31, as many as 30 in the United Kingdom and 17 in Turkey. The automobile is an important portion of society, and it is not expendable. In Europe it employs 3.5 million people, that is 11% of the entire industrial sector, but adding the employees to the sales and logistics networks the total rises dramatically to 13.8 million employees directly and indirectly, or 6.1% of the entire workforce in the European Union.

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