Strong start to 2026 for Italian new-car market as new brands make impact
10 February 2026
Following a listless 2025, the Italian new-car market enjoyed a promising start to 2026. Year-on-year registrations were up in January, while Chinese brands continued to break through. But which powertrains and carmakers boosted results? James Roberts, Autovista24 web editor, finds out.
The Italian new-car market kicked off 2026 with year-on-year growth. In January, 141,993 new vehicles were registered in the country, according to Autovista24 calculations of ANFIA data. This ensured a 6.2% upswing, consisting of 8,352 units.
January marked a second consecutive month of registration improvements following a year peppered with monthly declines. It also proved to be the highest volume total since March 2025. Despite this, automotive industry body UNRAE highlighted that overall figures remain below pre-COVID-19 levels.
‘After the difficulties of 2025, this first positive result fuels the hope that the current year will show a first gradual, but significant, recovery of the market, [and is] also thanks to the expected launch of new models,’ stated Roberto Vavassori, president of ANFIA.
January also featured impressive returns from Chinese electric vehicle (EV) manufacturers. This means 2026 could signal an Italian breakthrough for numerous new market entrants.
PHEVs and BEVs provide new-car push
New-car sales were undoubtedly buoyed by plug-in hybrid vehicle (PHEV) demand in January. In total, 11,638 PHEVs left Italy’s forecourts, 6,669 more than one year prior, which signalled a significant 134.2% increase in volume.
This new high monthly watermark for the powertrain helped establish an 8.2% market share, up 4.5 percentage points (pp) year on year. UNREA attribute the PHEV appeal to an expanding range of models, coupled with new provisions on company cars and fleets.
Additional factors include an attractive tax framework. Since January 2025, PHEV drivers have been granted a 20% road tax deduction on relevant vehicles. These ‘fringe benefits’ can be applied to company-provided vehicles, making them an attractive option.
Italian BEV incentive wake receding?
Battery-electric vehicle (BEV) sales remained healthy in Italy during January. The month saw 9,423 new all-electric vehicles take to Italy’s roads. This meant a 40.7% surge in demand, 2,725 more units than in January 2025. This volume gave BEVs a 6.6% market share, up 1.6pp from one year prior.
While the year-on-year gains in January were eclipsed by triple-digit gains in November and December, the figure remains impressive. The final two months of 2025 were boosted by EV incentives announced in late October.
Although fleeting and exhausted in a short time, they did have the desired impact of elevating BEV demand. A residual effect seems to have dripped into 2026, but how long can this momentum continue without meaningful support?
21,061 new PHEVs and BEVs joined Italy’s car parc in January, carving out a 14.8% market share, 6.1pp up on 12 months ago. Coupled with an 80.5% year-on-year unit increase, this has helped bolster a double-digit hold in the overall market.
Although impressive, the combination of PHEV and BEV registrations across the month remains considerably below internal-combustion engine (ICE) figures. It was also down 5.5pp from December’s record 20.3% market share, and closer to standard monthly figures seen throughout 2025.
Automotive package clarity required
As the Italian new-car market progresses in 2026, the EU’s proposed changes to emissions targets could influence electrification.
In December 2025, the European Commission rolled out the automotive package. From 2035 onwards, carmakers may only need to cut vehicle CO2 tailpipe emissions by 90%, compared with 2021 figures. This means new, more polluting vehicles could be sold.
For ANFIA president Vavassori, clarity on this issue is crucial for domestic policy regarding Italy’s EV fortunes moving forward.
‘With reference to the EU’s automotive package, we have instead strongly emphasised how important it is that the revision of the regulation on CO2 emissions of light vehicles takes a clear and pragmatic direction quickly, in order to correctly orient consumers,’ affirmed Vavassori.
Further ripples of uncertainty have been caused by manufacturer Stellantis. The carmaker confirmed charges of €22.2 billion relating to reworking its EV product strategy. It is also set to sell its stake in its battery joint venture, NextStar Energy, to LG Energy Solution. This all indicates a significant EV shift for the carmaker.
Additionally, Emanuele Cappellano, head of Stellantis Europe, recently provided a stark assessment of the robustness of natural continent-wide BEV demand.
‘In Europe, profit margins are shrinking and are on the verge of becoming negative. This is a major concern for us today. There is no natural demand for electric vehicles,’ he said, according to Car Dealer. ‘Demand only arises when there are subsidies in various countries or when car manufacturers reduce prices by burning cash,’ he added.
This comes as Stellantis doubled down on plans to increase production at several key Italian plants this year, as reported by Reuters. This follows on from a production decline last year, which saw passenger cars down by a quarter year-on-year. This is the lowest level since 1954, according to the FIM Cisl trade union, Reuters reported.
Chinese models move into the Italian mainstream
January saw BYD and Chery-owned Omoda and Jaecoo marques increase their market presence in Italy. This trio of relative newcomers enjoyed considerable success.
According to ANFIA data, BYD sold 3,553 units in January, up from 827 one year ago. This marked out a 329.6% volume increase. This meant it outsold carmakers like Cupra, Mazda and Tesla in January, suggesting 2026 could be a breakthrough year.
Combined Omoda and Jaecoo sales hit 2,496 units, etching a 357.1% year-on-year boost. The two brands have proved popular amid the demand for affordable PHEVs.
Stellantis accounted for most new-car volumes in January with 45,177 registrations. This ensured a 31.8% market share and a 8.7% year-on-year registration gain. Fiat led the way with 19,162 vehicles taking to Italy’s roads, up 20.5% on January 2025.
The Fiat Panda emerged as the best-selling new car in January with 13,300 registrations. Fiat’s overall lead was also helped by the Fiat Grande Panda, with its dual strategy as both a BEV and a mild hybrid. It accounted for 3,297 units.
Volkswagen Group (VW) followed Stellantis with 21,685 sales, a 4% year-on-year boost. While Cupra thrived with 1,712 units and a 51.8% upswing, SEAT endured significant annual declines, falling 35.1%. However, the most notable fall in January belonged to Dacia. The Renault Group brand saw year-on-year sales slump 40.8% to just 6,791 units in the month.
Hybrid momentum continuing?
The Europe-wide trend of new hybrid vehicle dominance, including full and mild versions, showed no signs of slowing in January.
In total, 74,422 new hybrid variants were registered in January, up 24.9% year-on-year in terms of volumes. This made up 52.4% of the monthly Italian new-car market, a 7.8pp improvement. It also signalled a 14,860 year-on-year unit increase.
Combining hybrid volumes with PHEV and BEV numbers saw the electrified market share reach 67.2% in January. With a total of 95,483, this underlined a new record as well as the largest ever share of the market, up from December’s previous peak of 62.9%.
In the coming months, should uncertainty continue around the automotive package and further EV incentives, this trend could continue. Alternatively, the hybrid dominance of the Italian new-car market could increase as customers remain uncertain of BEVs.
Is 2026 the year ICE finally melts away in Italy?
Despite sustained double-digit declines for combined petrol and diesel registrations across 2025, ICE popularity remained a stubborn fixture in Italy’s new-car market. However, could the dial finally be shifting?
ICE numbers slid to a fourth-lowest total in 13 months. Combined, 37,371 new petrol and diesel vehicles took to Italian roads in the first month of 2026. This equated to a fall of 11,215 units and a near 10pp drop in share to a low of 26.3%.
Following a year of declines, the Italian new-car market is shaping up to be a vibrant automotive crucible in 2026. The key questions are whether the ICE slide continues, will Italy avoid mixed EV signals and navigate choppy waters?
