Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Italian new vehicle registrations rebounded 33pc to 132,500 units in June from the prior month, according to the statistics published by Italy’s Ministero delle Infrastrutture e dei Trasporti on July 2.


Similar to developments in France, new car sales climbed on a monthly basis in June as easing lockdown measures is likely to have released pent up demand with buyers able to peruse showrooms since they reopened on May 4.


Unlike France and Germany, however, the Italian government is yet to pass proposals to introduce incentives for new vehicle purchases to get the wheels of the automotive industry, decimated by the impact of COVID-19, turning again.


When comparing June’s sales figures with the same month last year, the picture looks bleaker with new registrations plunging 23pc from the prior year; which will likely prompt industry stakeholders to lobby the government into providing state-aid for this failing sector.


Italy is considering incentives of up to €4,000 ($4,506) for buyers of combustion engine cars. The proposal is likely to cause new disagreements within Italy’s ruling coalition, with the anti-establishment 5-Star Movement opposing incentives for non-electric vehicles.


The co-ruling centre-left PD party, supported by the centrist Italia Viva, has proposed to include the incentives as part of an economic stimulus package currently under discussion in parliament, which is expected to be approved by mid-July.


Incentives would be financed partly by the government via a €250 million package and partly by car dealers, according to an amendment to the economic stimulus decree, while Italy might be allowed to front-load part of the money it would receive from the Europe Union’s recovery fund.

Leave a Reply

Your email address will not be published.