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Italy approves nearly $700 million in new subsidies for EVs
Published by Global Banking & Finance Review®
Posted on August 8, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on August 8, 2025
2 min readLast updated: January 22, 2026
Italy approves €600M in subsidies for EVs to boost sales and reduce pollution, focusing on urban areas. Beneficiaries must scrap older vehicles.
ROME (Reuters) -Italy has approved new subsidies worth almost 600 million euros ($698 million) for the purchase of electric vehicles as sales lag, the environment and energy ministry said on Friday.
The ministry will offer up to 10,000 euros to individuals and up to 20,000 euros to small firms, covering up to 30% of the total purchase price of a new electric car or commercial vehicle.
The subsidies, financed by European Union's post-COVID recovery funds, will be restricted to individuals or companies based in larger urban areas with the aim of reducing pollution and improving air quality.
To qualify for the programme, beneficiaries will be required to scrap an internal combustion vehicle of up to the Euro 5 emission class, dating from 2015 or earlier, the ministry said.
EV sales are struggling in Europe, hindered by high prices and lack of charging stations, even as the EU is using regulations in an effort to phase out combustion engine cars to meet carbon emissions goals.
In Italy, battery electric vehicles accounted for only 6% of new car sales in June, compared to more than 15% across the European Union.
Next year, the bloc is due to review its ban on the sale of new petrol and diesel cars from 2035 under pressure from the auto industry and some national governments to slow the transition.
($1 = 0.8596 euros)
(Reporting by Alvise Armellini; Editing by Joe Bavier)
Italy has approved new subsidies worth almost 600 million euros, equivalent to about $698 million, for the purchase of electric vehicles.
Individuals and small firms based in larger urban areas can qualify for the program, provided they scrap an internal combustion vehicle of up to the Euro 5 emission class, dating from 2015 or earlier.
The ministry will offer up to 10,000 euros to individuals and up to 20,000 euros to small firms, covering up to 30% of the total purchase price of a new electric vehicle.
EV sales are struggling in Europe due to high prices and a lack of charging stations, despite EU regulations aimed at phasing out combustion engine cars.
In Italy, battery electric vehicles accounted for only 6% of new car sales in June, which is significantly lower than the more than 15% across the European Union.
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