In May 2025, the car market in Italy remains flat, but the ecological transition struggles to gain speed. UNRAE sounds the alarm and calls for immediate reforms
A stable market only on the surface
In May 2025, 139,390 new cars were registered in Italy, a slight 0.2% decrease compared to the same month in 2024. The year-to-date total for January to May is 722,452 units, down by 0.5% from the same period last year, and a striking 20.6% below 2019 levels. Despite this apparent stability, the figures highlight deep concerns about the future of the sector and the green transition.
ECVs are growing, but not fast enough
Electric and low-emission vehicles are slowly gaining ground, but still far from a structural growth path. In May, battery electric vehicles (BEVs) accounted for 5.1% of the market—up from 4.8% in April and 3.6% in May 2024. Plug-in hybrids (PHEVs) also grew to 6.4%. Together, electric chargeable vehicles (ECVs) reached 11.5% market share, but the shift remains sluggish and uncertain.
A surprise incentive fund creates uncertainty
On May 19, the Ministry of Environment and Energy Security (MASE) announced an unexpected €597.3 million incentive program for the purchase of zero-emission vehicles. The funds were originally allocated for the development of public charging infrastructure. According to UNRAE, this move was uncoordinated with industry stakeholders and lacks operational details, generating more confusion than clarity among consumers and market players.
Incentives need clarity and fewer restrictions
UNRAE urges the government to quickly implement the program, while simplifying current requirements like mandatory scrappage, ISEE thresholds, geographic residence, and eligibility limited to micro-enterprises. These conditions risk undermining the potential impact of the incentives. A better use of the resources, UNRAE argues, would have been reforming company car taxation, a long-standing obstacle for Italian businesses. VAT deductions, cost deductibility, and amortization schedules should be linked to vehicle emissions.
Public charging infrastructure: the real problem
Another major issue lies with the public EV charging network. Of the 21,355 planned charging points funded by the National Recovery and Resilience Plan (PNRR), only 12,000 have been financed, with less than 20% of allocated funds used. UNRAE warns that charging infrastructure is critical to widespread EV adoption and cannot simply be replaced by buyer-side incentives.
UNRAE turns 75 and prepares for the future
On June 6, 2025, UNRAE will celebrate its 75th anniversary with a special event bringing together institutions, industry players, and media. The occasion will also mark the end of Michele Crisci’s presidency and the election of his successor, who will take on the leadership in a pivotal period as the industry moves toward 2035, the key year for the EU’s zero-emission goals.
Frequently Asked Questions (FAQ)
1. What does ECV stand for?
Electric Chargeable Vehicles, including BEVs and PHEVs.
2. What is the EV market share in May 2025 in Italy?
BEVs make up 5.1%, PHEVs 6.4%, for a total of 11.5%.
3. Why is the green transition considered slow?
Because zero-emission vehicles still have low market penetration and infrastructure is lacking.
4. What is the €597.3 million incentive fund?
A new government program to support EV purchases.
5. Why is UNRAE critical of the new fund?
It was announced without coordination or clear implementation plans.
6. What are the current incentive restrictions?
They include income thresholds (ISEE), location-based criteria, scrappage requirements, and micro-enterprise limits.
7. Why reform company car taxation?
To encourage businesses to adopt low-emission fleets.
8. How are PNRR funds for charging points being used?
Poorly: under 20% of the funds have been allocated so far.
9. What is UNRAE?
The National Union of Foreign Vehicle Manufacturers, established in 1950.
10. What happens on June 6, 2025?
UNRAE celebrates its 75th anniversary and elects a new president.
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