The Italian government has just announced a €950 million subsidy scheme to accelerate the shift to cleaner vehicles in the country. According to Reuters, the new subsidy scheme occurred following Stellantis’ remarks about Rome’s lack of EV commitment.
2024 eco-bonus
Italy’s eco-bonus primarily aims to incentivize low-income buyers of “vehicles with low pollutant emissions,” including combustion engines.
According to Industry Minister Adolfo Urso’s announcement on Thursday, the budget would total €950 million by the end of 2024. The government divided the funding into the following categories:
- €793 million for cars (€240 million for BEVs and €150 million for plug-in hybrids)
- €35 million for mopeds and motorbikes
- €53 million for light commercial vehicles
- €20 million for used cars
- €50 million for a long-term rental program
Considering that battery-electric vehicles and plug-in hybrids would only access €390 of the total car subsidies, €403 million will go to full hybrids, mild hybrids, and pure combustion engines with 61-135 g/km CO2 emissions.
Subsidies
The subsidies vary depending on the applicant’s income and the emissions standard of the old combustion engine, which the government would scrap.
Interested buyers with an annual income of sub-€30,000 and a Euro 0-Euro 2 emission standard combustion engine can access up to €13,750 per electric car.
Generally, a new electric car purchase or an economical combustion engine only qualifies for the scheme with a list price of €35,000 net or €42,700 gross. Meanwhile, it subsidizes plug-in hybrids at up to €45,000 net or €54,900 gross.
The economical combustion engines’ environmental bonus is limited to €3,000 and requires scrapping in return. BEVs and PHEVs can also benefit from up to €7,500 without scrapping an old ICE.
“Today we have reached a new milestone to having the necessary tools to help a market that for too long has failed to take the correct path of energy transition, relegating Italy to the back of European developments of four-wheel electrification. Now we can all get to the starting line, bringing our collective energy and our skills to obtain the best result.”
Davide Mele, Stellantis Corporate Affairs Group (via Barron’s)
Italy is considering investing in Stellantis
Italy’s eco-bonus will take effect in March 2024. Interestingly, this new subsidy scheme occurred after a clash between Carlos Tavares-led automaker Stellantis and Italy’s rightist government over vehicle production levels in the country.
Industry Minister Adolfo Urso asserted that Stellantis previously stated goals to boost domestic production back to its million-level peak in 2017, which declined to 750,000 units in 2023.
In that sense, Minister Urso emphasized Italy’s willingness to match the French government by acquiring a stake in Stellantis. For context, France currently has a 6% stake in the multinational automaker.
“If Tavares maintains that Italy needs to do the same as France, which has boosted its active investment in Stellantis, then they can ask. We can discuss it together.”
Industry Minister Adolfo Urso
Such government initiatives are crucial for the clean vehicle uptake’s continuous expansion, potentially attracting many citizens to join the shift. Moreover, Italy’s willingness to invest in Stellantis also highlights the significance of collaborations between automakers and the government to boost production.
