Italy, a country whose citizens have been among Europe’s most reluctant buyers of battery-electric vehicles, approves a €600 million ($698 million) package of consumer incentives to promote a switch from internal-combustion engines.
The move, paid for by redirecting European Union post-pandemic recovery funds, will see the nation’s environment and energy ministry offer up to €10,000 ($11,630) to individuals and €20,000 ($23,280) to small businesses, or up to 30% of a new vehicle’s purchase price, in a bid to boost BEV sales, Reuters reports.
The plan will be restricted to individuals and businesses living and working in larger urban areas despite the current lack of public charging infrastructure in these congested areas.
To qualify for the government offer, applicants must scrap an existing ICE vehicle of up to the Euro 5 emission class or vehicles dating from before 2015.
Italy’s government is panicked by its consumers’ lack of appetite for BEVs, which currently make up just 6% of market share compared to more than 15% across the EU region, a figure well below regulators’ anticipated consumer take-up of electrics.
Industry watchers say BEV sales in Europe continue to lag behind expectations because of comparatively high prices compared to ICE equivalents and lack of charging infrastructure. At the same time, automakers are facing large financial penalties for not meeting mandated BEV sales per EU rules.
The EU has already delayed the introduction of scheduled fines after dire warnings from automakers and their representatives that calculations of billions in penalties while facing increased competition from cheaper Chinese imports could threaten their businesses.
Next year, the economic bloc is expected to review its ban on the sale of new ICE cars from 2035 in reaction to calls from automakers to allow hybrid and fossil-fuel-free ICE technology to continue to be developed and improved, arguing they will lower climate-warming emissions faster than enforcing a blanket BEV strategy.
