Italy approves new car incentives

Italian Prime Minister Mario Draghi has signed a decree to allocate €650 million ($709 million) per year from 2022 through 2024 for incentives to buy electrified or low-polluting cars, the country’s industry ministry said on Wednesday.

The outlay is part of a wider €8.7 billion long term plan that Italy announced earlier this year to support its carmaking industry. This allocates €700 million in 2022 and €1 billion per year from 2023 until 2030.

The wait for incentives, which Rome had announced earlier this year, weighed on car sales in the first months of 2022, with analysts and lobby groups saying buyers were postponing purchases while waiting for the government to implement them.

New car registrations in Italy fell around 23% in February and 30% in March from the year earlier periods.

Rome will subsidise up to €5,000 of the purchase price of new electric vehicles costing up to €35,000 excluding VAT.

That includes a €2,000 contribution linked to the scrappage of a polluting combustion-engine car, the decree showed.

The purchase of plug-in hybrid electric vehicles costing up to €45,000 will be subsidised by up to €4,000, while the plan also includes an incentive of €2,000 for state-of-the art combustion-engine (Euro 6) cars costing up to €35,000 when older vehicles are scrapped.

Funds are also available for incentives to buy new motorcycles and for small- and medium-sized business to buy fully electric vans, according to the decree.

Published in The Express Tribune, April 8^th, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.