Italy’s government on Wednesday announced a 650 million euro ($700 million) stimulus package for the next three years to encourage the purchase of new cars – including older models as well as low-emission electric or hybrid vehicles.
The decree adopted at a cabinet meeting chaired by Prime Minister Mario Draghi took the money from the “automobile fund”, a budget for which 8.5 billion euros ($9.27 billion) is earmarked until 2030.
Under the new decree, purchases of low-emission electric or hybrid vehicles will be eligible for a bonus of between 2,000 and 3,000 euros.
A 2,000-euro cash bonus will also be available on a wide range of older-generation vehicles, “including those with traditional petrol and diesel engines, as long as they have emissions contained between 61 and 135 grams of CO2 per kilometer”, according to reports from financial newspaper Il Sole 24 Ore.
Further funding is made available to those who scrap older vehicles at the time of purchasing the new car,
The payment will be made directly to individuals “in the event of a purchase with financing, as long as the holder retains ownership of the vehicle for at least one year”, writes Il Sole 24 Ore.
The decree text containing full details of the scheme is yet to be published.
Italy has offered several new car ‘bonuses’ in recent years after it first introduced a discount to tempt drivers to trade in their old cars for lower-emission models back in 2019.
Announcing the new scheme, Economic Development Minister Giancarlo Giorgetti.said: “With this greenlight for bonuses, we are giving a concrete and much-awaited response to the automobile sector which is suffering profoundly at the moment.”
“This multi-year measure will allow companies to get their industrial plans onto the path of development,” he added.
“First the pandemic, the shortage of raw materials and now the war (in Ukraine) are putting a severe strain on this sector which represents one of the jewels of Italy.”