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In the rapidly evolving world of automotive technology, Italy's new-car market is showing a more modest pace of electrification compared to other major European markets.
January 2025 saw a 16.9% increase in the electrified market, with a total of 71,236 registrations. However, this growth pales in comparison to the EU average market share for battery-electric vehicles (BEVs) which reached around 15.6% in the first half of 2025.
Italy's BEV adoption has lagged behind, with a stagnant or declining share in recent years and slower growth dynamics. In 2022, Italy's EV market share was around 3.8%, showing a slight decline from 4.6% in 2021, indicating a slow adoption rate compared to the overall EU trends.
Despite this, Italy saw a 51.5% increase in EV sales in H1 2025, a sign of some recovery. However, the country still lags behind leading countries in terms of EV adoption per capita, with only about 10 EVs per capita, far below the European average of 25 cars per capita.
The reasons for Italy's slower growth in the BEV market include limited public charging infrastructure, low household electrical capacity for home charging, discontinued incentives, and weaker government support compared to countries like Germany or the Netherlands.
In January 2025, the Italian new-car market experienced a 0.7% growth when excluding diesel registrations. However, the overall market saw a 5.8% year-on-year delivery decline, with a total of 133,711 new models registered. Diesel accounted for 9.6% of all deliveries, down 5.8 percentage points year on year.
Petrol registrations fell by 17% in January 2025, with 35,991 units. Plug-in hybrids (PHEVs) had a positive January, with 4,877 registrations up 21% compared to one year ago. The internal combustion engine (ICE) market slumped 25.2% in January 2025, with 48,836 deliveries.
The 'others' category, including liquid-petroleum gas and natural gas vehicles, fell 13.5% in January 2025. Excluding all-electric vehicles from the overall total, the Italian new-car market would have fallen by 8.7% in January 2025.
BEVs surged 126.2% in January 2025, reaching 6,702 registrations, an increase of 3,739 units compared to 12 months ago. This growth was accompanied by a drop in petrol's market share, which fell to 26.9%, down 3.7 percentage points.
The EU's transport commissioner Apostolos Tzitzikostas will present an action plan for the sector on 5 March. ANFIA president Roberto Vavassori commented that European policies have impacted Italy's market, leading to a weak domestic market and production chain difficulties. He emphasized the need for a European plan to address the 2035 targets and for action to be taken quickly to provide flexibility in regulation, stimulate European local production, and encourage technological innovation.
In summary, while the overall European BEV market is expanding rapidly in 2025, Italy's new-car market has experienced only moderate growth and remains significantly below the European average in BEV adoption, indicating a less mature market and structural challenges in fostering electric vehicle uptake.
- The growth in Italy's electrified market might benefit from investments in renewable energy and environmental science by the industry.
- Personal finance, wealth management, and real estate businesses could evaluate the impact of climate-change policies on the housing market and personal finances in light of Italy's slower adoption of electric vehicles.
- Technology companies could develop innovative charging infrastructure solutions to address the limitation in public charging infrastructure in Italy.
- The European Commission's action plan for the transport sector could provide guidance for Italy's government to stimulate technological innovation and local production in the electric vehicle industry.
- The finance sector could explore opportunities in the renewable energy industry as a way to diversify investments, given the potential for growth in sectors such as solar and wind energy.
- In the context of the European sporting scene, football and other European leagues offer a unique opportunity for sponsorship and corporate social responsibility initiatives promoting cleaner energy and electric vehicle adoption.
- Government incentives and support could encourage residential builders to incorporate EV charging stations in new housing developments, ensuring homeownership is prepared for the transition to electric vehicles.
- Businesses could partner with universities specializing in environmental science to research and develop more efficient energy storage solutions for electric vehicles, addressing the challenge of low household electrical capacity for home charging.
- To achieve the 2035 targets for electric vehicle adoption, collaboration between government, industry, and various sectors, including finance, technology, and sports, will be crucial in fostering innovation, investment, and public engagement in the transition to a low-carbon economy.
