Italy launches a €600 million electric vehicle incentive program in 2025, offering up to €10,000 for individuals and €20,000 for small businesses to accelerate EV adoption in cities.
Italy is stepping up its electric vehicle push with Italy EV incentives 2025, unveiling a €600 million ($698 million / £550M) program that offers up to €10,000 ($11,630 / £9,200) for individuals and €20,000 ($23,280 / £18,300) for small businesses. The aim is to boost battery-electric vehicle sales through city-focused incentives using redirected EU recovery funds while phasing out older combustion vehicles.
Italy EV Incentives 2025: A Strategic Push Toward Cleaner Mobility
As part of the Italy EV incentives 2025, the country is investing nearly €600 million ($698M / £550M) — sourced from EU post-COVID recovery funds — to encourage the switch to electric vehicles in urban areas. Individuals may receive up to €10,000 ($11,630 / £9,200), while small businesses can get €20,000 ($23,280 / £18,300) or up to 30% of the vehicle’s cost. To qualify, applicants must scrap an older internal combustion engine vehicle (Euro 5-standard or older, pre-2015).
Why These Incentives Matter for Italy
Italy currently lags behind, with battery-electric vehicles (BEVs) comprising only 6% of new car sales in June 2025 — well below the EU average of 15%. These Italy EV incentives 2025 aim to close that gap, reduce urban pollution, and improve air quality, particularly in congested cities where charging infrastructure remains limited.
How the Subsidy Program Works
- Launch Date: Expected from September 2025
- Funding Source: National Plan for Recovery and Resilience (PNRR)
- Target: At least 39,000 zero-emission vehicles by June 2026
- Eligibility Requirements:
- Individuals with an “ISEE” (household income indicator) of ≤ €30,000 may receive €11,000
- Those between €30,000 and €40,000 ISEE level qualify for €9,000
- Micro-enterprises can claim up to €20,000, covering 30% of the vehicle price
- Application: Processed via a government IT platform designed for transparency and ease of access.
Wider Context & Market Challenges
Europe’s move to eliminate new combustion vehicle sales by 2035 faces pressure, and Italy’s pilot programme reflects a balance of ambition and realism. With high EV prices and limited public charging infrastructure posing barriers, the Italy EV incentives 2025 are a strategic stopgap to push adoption while the broader ecosystem catches up
