Are incentives a fleeting jolt for Italy’s stagnant new-car market?

08 December 2025

New incentives helped propel registrations of battery-electric vehicles (BEVs) to a new high in November. But behind short-term headline highlights, multiple factors are dragging the Italian new-car market down as the year’s end approaches. Autovista24 web editor James Roberts investigates.

The Italian new-car market ended up at a standstill in November. With 0% year-on-year growth, the country’s ongoing registration inertia was reflected in the delivery figures.

In total, 124,228 new vehicles took to Italian roads in November, according to ANFIA data. When compared to 2019, ANFIA confirmed registrations in the first 11 months of this year were 20.2% lower than pre-pandemic volumes.

Electric vehicles (EVs), including battery-electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs), did much of the heavy lifting in November. BEVs soared to their highest monthly total of 2025. This followed the rollout of new nationwide EV incentives in late October.

As with October, without strong showings from these powertrains, the Italian new-car market would have suffered a tangible fall. Removing these numbers, the market would have witnessed a 11.8% slump.

Between January and November, 1,417,045 new vehicles joined Italy’s car parc, according to ANFIA. This equated to a 2.4% decline year on year, amounting to 35,342 fewer units. While hybrid powertrains provided the largest share at 44.2%, BEVs and PHEVs account for just 5.8% and 6.2%, respectively. Additionally, reduced petrol and diesel uptake continued to drag on the overall market.

Italy’s new-car incentive conundrum

The success of Spain’s soon-to-be-replaced MOVES scheme is a signal of how EV incentives can support new-car market growth. Italy, however, has been gripped by uncertainty and long waits when it comes to new EV subsidies.

In August, the Italian Ministry of the Environment and Energy Security (MASE) confirmed new EV incentives. These were officially launched on 24 October and have helped boost BEV sales in the country.

As part of Italy’s National Recovery and Resilience Plan (PNRR), private consumers can receive up to €11,000 towards a new BEV. This is dependent on family income and the scrappage of a Euro 5 internal-combustion engine or earlier. Meanwhile, small businesses could apply for up to €20,000 for an electric light-commercial vehicle (LCV).

In total, the programme was allocated over €597 million in funding. This was planned to be used until mid-2026, with a target of replacing around 39,000 internal-combustion (ICE) vehicles.

However, these incentives were exhausted within 24 hours of launch. MASE confirmed in a statement. ‘According to data disclosed by Sogei to the Ministry of the Environment and Energy Security, a total of 55,680,000 vouchers were issued, requested by individuals and microenterprises,’ it stated.

One reason for this is that applications had to be submitted prior to the purchase of the new vehicle. Any funds that become available again will be reactivated for new applications.

BEVs boost new-car market

These short-lived incentives seemingly achieved their objective of boosting BEV sales in Italy throughout November. However, in the longer term, with no immediate follow ups confirmed for 2026, there is little cause for celebration.

In November, 15,266 new BEVs were received by customers in Italy. This marked the highest total of the year and a new monthly record. The previous high was set in June 2024 when 13,368 units were registered.

November’s incentive-aided total amounted to a year-on-year increase of 132.5% and an additional 8,701 units. This unsurprisingly secured a new monthly market share high of 12.3% for the powertrain. Compared with November 2024, this resulted in a significant 7 percentage point (pp) gain.

Despite the notable BEV gains recorded in November, longer-term inertia is evident. After 11 months, the crux of Italy’s new-car market issues are evident when assessing BEV fortunes.

From January to November, 82,555 new BEVs were registered in the country. While a 38% year-on-year improvement was positive, the market share upturn proved muted. BEVs made up 5.8% of the Italian new-car market, improving by just 1.7pp year on year. This made it the country’s lowest-ranked powertrain, achieving a 22,751-unit uptick.

PHEVs plough on in November

For the third consecutive month, PHEV registrations hit a triple-digit year-on-year improvement. The ever-popular powertrain recorded 8,664 deliveries in November. This ensured a 117.9% upswing, the second highest of the year, with 4,687 more deliveries than 12 months prior. This achievement meant it took 7% of the overall market, up 3.8pp.

Between January and November, PHEVs provided the headline gains. With 88,492 new cars reaching customers, this enabled an 80.6% year-on-year push for the powertrain.

But as with BEVs, apparent registration highs did little to punch through into meaningful market share gains. After 11 months, the PHEV share stood at 6.2%, the second lowest after BEVs.

Combining BEV and PHEV results into EV registrations, first impressions can be deceiving. Between January and November, the unified powertrains recorded 171,047 deliveries.

This ensured an eye-catching 57.2% year-on-year increase. It also pushed the plug-in market share to 12.1%, a 4.6pp year-on-year increase. Despite this, Italy remains in the EV doldrums. Out of the ‘big five’ European automotive markets, it continues to possess the lowest plug-in share.

Hybrids remain on top

Despite only recording a 0.6% year-on-year registration improvement in November, hybrids remained Italy’s most popular new-car option. However, it seems that the incentive impact powering BEV purchases cannibalised this popularity.

Including full and mild-hybrids, 52,819 new vehicles left Italy’s forecourts, the second lowest monthly total of the year. This resulted in a 0.6% year-on-year improvement. Hybrids also recorded their smallest monthly share this year at 42.5%, up by just 0.2pp.

Widening the scope, 626,139 hybrids were registered across the first 11 months of 2025. This equated to a 7.9% boost on 2024 figures, helping the powertrain to command a 44.2% market share, up from 39.9% a year earlier.

Adding hybrid registrations to EV volumes, November did signal some gains. As BEV numbers reached a new high, the drop in hybrid adoption hampered any significant electrified market gains. From January to November, the electrified group reached a 56.3% share, up from 47.4% 12 months ago.

Stubborn ICE and gas not helping electrification

Month-on-month declines of ICE, encompassing petrol and diesel, are the norm across Europe. Italy has been no exception. However, ICE still controls a stubbornly high market share, which is stunting gains made by electrified models.

Despite this, November did herald a small victory for decarbonisation. The month saw the ICE market share fall to a new low for 2025, hitting 29.5%.

The 36,702 registrations were also the second-lowest result after the holiday-impacted August. This marked the first time this figure dropped below 30%, and year-on-year ensured a 10.7pp share plummet.

However, after 11 months, new petrol and diesel vehicles made up 34.5% of the overall Italian new-car market. Breaking this down, petrol alone commanded a 24.8% share, the second largest after hybrids. Meanwhile, diesel held 9.7% of the market, the third largest.

Italy has another legacy fuel type offsetting electrification. The ‘other’ category, made up of liquified petroleum gas (LPG), compressed natural gas (CNG) and hydrogen fuel-cell vehicles, complicated matters. With an 8.7% market share, it outperformed both PHEV and diesels, registering 10,777 units.

Between January and November, the ‘other’ category quietly chipped away at the haphazard BEV and PHEV gains. This powertrain grouping ended the 11-month period with 9.2% of the market. This figure has proved resilient, falling just 0.2pp. Crucially, it remains above EVs in the pecking order.