Italian government announces new EV incentives with ministerial decree

Italy’s Prime Minister, Mario Draghi, signed a decree last week that will incentivise people to buy electric vehicles. 

The ministerial decree, Reuters reports, will see €650million (£543million) allocated annually between 2022 and 2024 to encourage people to buy low-pollution or electric vehicles.

The decree, signed by Draghi on Wednesday (6 April 2022), is mainly aimed at Italy’s car manufacturing industry, but there will also be benefits for the two-wheeler industry.

Of course, while Italy is notorious for its famous car brands like Ferrari, Lamborghini and Fiat, it has also been a country which has led the way in electric motorcycling thanks to brands like Energica, who have also been the motorcycle supplier to the MotoE World Cup since its inaugural season.

According to Reuters, the Italian government will “subsidise up to 5,000 euros of the purchase price of new electric vehicles costing up to 35,000 euros excluding VAT.”

Additionally, hybrid vehicles costing up to €45,000 will see up to a €4,000 subsidisation, and there will also be “an incentive of 2,000 euros for [Euro6] cars costing up to 35,000 euros.”

The decree will also make incentives for motorcycles and scooters, with Moto.it reporting that up to 40% (up to €4,000) of the price of two-wheelers could be cut thanks to the new legislation when scrapping a Euro 0 to Euro 4 vehicle, and 30% (up to €3,000) when not scrapping an older vehicle. 

Additionally, Moto.it reports that there will be a redemption of up to €750 for people buying scooters, e-bikes and bicycles, which will be “paid in the form of of a tax credit at the time of the tax return,” Moto.it says.

In comparison, the UK government offers only up to a £1,500 discount on low-emission motorcycles and scooters.