The Italian Car Market in 2024: Key Figures and a Comparison with the Past
The Italian automotive market closed 2024 with 1.559 million new registrations, showing a slight decline compared to the previous year. However, the most alarming figure is the comparison with 2019, with a -18.7% drop from pre-pandemic levels.
From an economic perspective, the sector’s revenue remained stable at €46.9 billion, generating €8.45 billion in VAT for the Treasury. However, the real issue lies in the slowdown of the ecological transition: Italy continues to lag behind other Major European Markets, with rechargeable vehicle sales stuck at 7.6%, compared to 28.2% in the UK, 25.4% in France, and 20.3% in Germany.
Electric Mobility: Why Is Italy Falling Behind in Europe?
One of the most concerning data points is the low adoption of electric and plug-in hybrid cars. In 2024, registrations of fully electric vehicles (BEVs) stalled at 4.2%, while plug-in hybrids (PHEVs) dropped to 3.4%. Overall, the share of low-emission vehicles stands at 7.6%, placing Italy at a significant disadvantage compared to other European countries.
The reasons behind this delay are multiple:
- Ineffective incentives that fail to encourage EV purchases.
- Insufficient charging infrastructure: Italy has around 54,000 charging points, with an average of 11 stations per 100 km of road, compared to 125 in the Netherlands and 22.3 in Germany.
- A punitive tax regime for company cars, which play a crucial role in EV adoption in other countries.
To bridge this gap, UNRAE has reiterated the need for a multi-year plan to support the purchase of zero and low-emission vehicles, alongside policies to expand the electric and hydrogen refueling infrastructure.
An Aging Car Fleet: Environmental and Safety Risks
The Italian car fleet continues to grow, reaching 40.57 million vehicles in 2024 (+1.3% compared to 2023). However, the real concern is the average vehicle age, which has hit 12.8 years, significantly above the European average.
The presence of highly polluting vehicles remains widespread:
- 8.8 million cars (21.8%) are older than Euro 4 standards, meaning they are over 19 years old.
- Petrol and diesel cars still dominate, making up 83% of the market, while hybrids increased to 6.8% and LPG to 6.7%.
- Rechargeable cars (EV and PHEV) account for just 1.4% of the total fleet.
The slow renewal of the car fleet is not only an environmental issue but also impacts road safety and public health.
Used Car Market on the Rise: Two Used Cars Sold for Every New One
While the new car market struggles to recover, the used car market continues to grow. In 2024, 5.4 million ownership transfers were recorded, marking a 7.4% increase. The used-to-new ratio rose to 2:1, a figure still lower than in other Major European Markets, but steadily growing.
The average age of used cars sold slightly decreased from 10.7 years in 2023 to 10.6 years in 2024, indicating a slow but ongoing turnover in the second-hand market.
Commercial, Industrial Vehicles, and Buses: Market Trends and 2025 Forecasts
Other automotive market segments show mixed trends:
- Light commercial vehicles: grew by 1.1% in 2024, but a 6.9% decline is expected in 2025.
- Industrial vehicles: saw a slight -0.8% drop, with a more significant contraction projected for 2025 (-16.5%).
- Trailers and semi-trailers: experienced a sharp -13.6% decline in 2024, with an additional 14% drop expected in 2025.
- Buses: grew by 29%, supported by PNRR funds, with stable projections for 2025, especially in urban and tourism transport.
Conclusion: A Sector at a Crossroads Between Green Transition and Economic Challenges
The Italian automotive market stands at a turning point: on one hand, there is a need to accelerate the green transition, while on the other, challenges remain due to weak demand and an aging car fleet.
Without targeted incentives, a more extensive charging infrastructure, and tax reforms for company cars, Italy risks falling further behind other Major European Markets. The year 2025 will be crucial in determining whether the industry can finally embrace renewal or continue to struggle with its accumulated delays.
