11 August 2025 at 04:31 pm IST
On August 8, 2025, Italy’s Environment and Energy Ministry unveiled a fresh subsidy program worth nearly €600 million (approximately $698 million) to stimulate electric vehicle (EV) purchases. This initiative comes as EV adoption in the country remains notably slow. Under the program, individuals can receive up to €10,000, while small businesses can get as much as €20,000—equivalent to covering 30 percent of the purchase price for a new electric car or commercial vehicle. To qualify, applicants must scrap an internal combustion engine vehicle of up to Euro 5 emission class—from 2015 or earlier—ensuring older, more polluting vehicles are taken off the road. The subsidies are financed through European Union post-COVID recovery funds and are aimed specifically at individuals and companies located in large urban areas. The goal is to reduce pollution and improve air quality in cities. Despite policy efforts, EV adoption remains lackluster. As of June, battery electric vehicles accounted for only 6 percent of new car sales in Italy—well below the EU average of over 15 percent. Looking ahead, the broader EU plan to phase out new petrol and diesel car sales by 2035 will be reviewed next year. This comes in response to mounting pressure from both the automotive industry and several national governments seeking to slow the pace of the transition.
