The Italian car market continues to suffer. February 2025 recorded a significant decline, with 137,922 new vehicle registrations, a drop of 9,300 units compared to the same month in 2024. This downward trend highlights the sector’s ongoing struggles, exacerbated by uncertainty over incentives, regulations, and the ecological transition policies.
The highly anticipated European Automotive Action Plan, set to be unveiled on March 5, could provide guidelines for the industry’s future. However, many key questions remain unanswered. Meanwhile, the debate over incentives for zero-emission vehicles rages on, with the risk of a fragmented and ineffective approach across Europe.
Let’s take a closer look at the Italian car market’s current situation and its future prospects.
A Dark February for Car Registrations in Italy
February 2025 ended with a 6.3% drop in car registrations, totaling 137,922 units, down from 147,170 in February 2024. The first two months of the year have also shown a negative trend: 271,638 cars registered, marking a 6.1% decline compared to 2024, and a staggering 21% drop compared to 2019, underscoring the market’s failure to recover to pre-pandemic levels.
Although this decline is partly attributed to one fewer business day compared to 2024, the data remains concerning. The automotive industry struggles with regulatory uncertainty and wavering consumer confidence.
Electric and Hybrid Cars: Growth Remains Too Slow
Despite the overall market contraction, the electric and hybrid car segment shows slight growth, but not enough to reverse the trend.
- Battery electric vehicles (BEVs) accounted for 5.0% of the market, up from 3.4% in February 2024, but unchanged from January 2025.
- Plug-in hybrids (PHEVs) increased to 4.5%, up from 3.2% in February 2024.
- Overall, electrified vehicles (ECVs) captured 9.5% of the market, still insufficient to drive a solid ecological transition.
The slow growth is due to the lack of structural incentives and insufficient charging infrastructure, both of which remain significant obstacles to the expansion of sustainable mobility.
The Clean Industrial Deal: A Missed Opportunity for the Automotive Sector
On February 26, the European Commission introduced the Clean Industrial Deal, a strategy aimed at accelerating decarbonization while strengthening European industry’s competitiveness. However, the document lacks specific measures to revitalize the automotive sector.
The eagerly awaited Automotive Action Plan, set for release on March 5, might provide more targeted solutions, but so far, it outlines only five key areas:
- Innovation and Digitalization
- Clean Mobility
- Resilience of the Supply Chain
- Workforce Training and Social Aspects
- Level Playing Field and Business Environment
For now, the industry awaits clear answers on incentives, infrastructure, and long-term strategies.
The Challenges of Clean Mobility: Uncertain Incentives and Funding
One of the most critical issues is the lack of structured incentives for sustainable mobility. The European Commission has expressed its intention to support demand for zero-emission vehicles, but without introducing a centralized aid program.
Instead of a European-wide fund, Brussels appears to favor recommendations for member states to find national funding sources. This approach risks creating significant disparities between countries, potentially disadvantaging markets like Italy, which is already behind in its ecological transition.
Without structured financial support and a coordinated strategy, the industry may remain stagnant, discouraging investment and innovation.
Emission Regulations: A Small Lifeline for Car Manufacturers
A potential relief for car manufacturers comes from European Commission President Ursula von der Leyen, who has proposed modifying CO2 emissions regulations.
The idea is to calculate emissions based on a three-year average, rather than on an annual basis, to better reflect market realities. If approved by the European Parliament and Council, this change could give manufacturers more financial stability and planning flexibility.
The Future of the Industry: UNRAE’s Demands to the Italian Government
The Italian Association of Foreign Carmakers (UNRAE) will play a key role at the March 11 Automotive Roundtable, organized by the Ministry of Enterprises and Made in Italy (MIMIT).
Among UNRAE’s main requests:
- A multi-year incentive plan for low- and zero-emission vehicles
- Accelerated development of charging and hydrogen refueling infrastructure
- Tax reform for company cars, currently uncompetitive compared to other European countries
- Adjusting VAT deductibility and cost deductions based on CO2 emissions
- Reducing the depreciation period to three years to encourage corporate fleet renewal
“Our proposals – states Michele Crisci, President of UNRAE – can help create a truly competitive and sustainable environment for Italy’s automotive industry.”
The Italian Car Market at a Crossroads
The ongoing decline in car registrations reflects the broader struggles of an industry caught between lack of incentives, inadequate infrastructure, and uncertain European regulations.
The upcoming Automotive Action Plan may provide some clarity, but without firm commitments on financial support and coordinated measures across Europe, the ecological transition remains a distant goal.
🔹 What do you think? What measures are needed to revive the car market? Share your opinion in the comments below! 🚗💬
