Italy’s new-car market experienced a significant decline in August, with industry experts calling for new incentives to boost the sales of battery-electric vehicles (BEVs). The month saw a total of 67,322 new vehicle registrations in the country, marking a 2.7% drop compared to the previous year.
In the first eight months of 2025, new-car registrations in Italy were down by 3.7% compared to the same period in 2024. This trend was attributed to a decrease in petrol and diesel registrations, while electrified vehicles, especially plug-in hybrids (PHEVs), showed some growth.
Despite the growth in PHEVs, the overall market volumes in August were reduced, leading industry bodies to express concerns about the state of the market. ANFIA described the market as being in a ‘stalemate’ and emphasized the need for new incentives to drive the adoption of BEVs.
The introduction of BEV incentives, worth nearly €600 million, was confirmed by the Italian Ministry of Environment and Energy Security (MASE) in August. These incentives were scheduled to be implemented in September, but there have been delays in their rollout, causing uncertainty among consumers and potentially slowing down the electrification process.
The market share of BEVs in Italy saw a slight increase in August, but industry experts believe that the current growth is insufficient to drive significant changes in the market. The combination of BEV and PHEV registrations in August accounted for 11.8% of total sales, showing a year-on-year increase.
Hybrids remained the most popular powertrain in Italy, despite recording a slight decline in total volumes in August. The market share of hybrids reached 45.2% in August, with a total of 30,415 registrations.
Overall, the Italian market continues to show a preference for hybrids and ICE vehicles, with petrol and diesel registrations still dominating the market. However, the introduction of new incentives for BEVs could potentially shift the market towards more sustainable and environmentally friendly options.
In conclusion, the Italian new-car market is facing challenges, but with the right incentives and policies in place, there is potential for growth in the adoption of electric vehicles. It remains to be seen how the market will evolve in the coming months with the implementation of new incentives.
