Italy to give new electric car buyers subsidy of up to 6,000 euros

A new Fiat 500 electric car is unveil in Milan
New Fiat 500 electric cars are displayed at a Fiat Chrysler event held to unveil its first electric model, in Milan, Italy, March 4, 2020. REUTERS/Flavio Lo Scalzo

March 11, 2022

(Corrects 2nd paragraph to say Rome has approved decree to set aside money)

ROME (Reuters) – Italy plans to subsidise up to 6,000 euros ($6,570) of the purchase price of new electric vehicles as part of its plan to support the country’s automotive industry, a government source said on Tuesday.

Rome has set aside 8.7 billion euros until 2030, including around 700 million euros for this year, to support its carmaking industry.

The subsidy of up to 6,000 euros is subject to the purchase of new vehicles costing up to 35,000 euros and includes a 2,000 euro contribution linked to the scrappage of a polluting combustion-engine car.

The purchase of hybrid electric vehicles costing up to 45,000 euros will be subsidised with up to 2,500 euros, while the plan also includes incentives of 1,250 euros for state-of-the art combustion-engine (Euro6) cars when older vehicles are scrapped, the source said.

($1 = 0.9136 euros)

(Reporting by Giuseppe Fonte, Writing by Giulio Piovaccari, Editing by Paul Simao)