Rome (Reuters) – Italy is planning to introduce new incentives for car purchases that consider carbon emissions in the manufacturing and distribution process, according to sources familiar with the matter. The move is seen as a way to protect the Italian automotive industry against the increasing imports of Chinese-built electric cars (EVs) in Europe.
Taking inspiration from a similar scheme implemented in France last month, the Italian government is studying the possibility of introducing a similar incentive program. The sources confirm that Italy is interested in following France’s approach, as they consider it “reasonable”.
Unlike traditional incentives that focus solely on vehicle emissions, the proposed new rules in France will evaluate car models based on government-set thresholds for the energy used in manufacturing their materials, assembly, and transportation to the market, as well as the type of battery used in the vehicles.
However, European Union competition rules prevent countries from favoring domestic producers. As a result, the criteria implemented in France are likely to exclude Chinese cars from receiving bonuses since China’s automotive industry relies heavily on coal-generated electricity and transportation is largely done by boat worldwide.
In defending the criteria, Paris has stated that they comply with WTO rules, with exemptions allowed for health and environmental reasons.
Italy aims to establish a comprehensive long-term plan for its automotive industry in collaboration with relevant local groups, including Fiat-maker Stellantis, the country’s primary automaker. The government is pushing for Stellantis to increase its annual production in Italy to one million vehicles.
The ongoing discussions, expected to continue until the end of the year, also include the development of new incentive schemes in Italy. Industry Minister Adolfo Urso emphasized the need for a revision of the existing framework to support the shift towards more environmentally friendly vehicles and bolster domestic car production. He revealed that Italians have utilized 80% of the incentives to purchase vehicles manufactured abroad.
Reporting by Giuseppe Fonte in Rome, Gilles Guillaume in Paris, and Giulio Piovaccari in Milan; writing by Giulio Piovaccari; editing by Keith Weir
Credit: The Star : Tech Feed
