State of Play:
Sustainable Automobility in Europe

Italy’s Recovery and Resilience Plan 

The plan’s total value is €194.4 billion, which includes both the portion financed with national resources and the Recovery and Resilience Facility (RRF) Grants of €71.8 billion and RRF loans of €122.6 billion. The plan comprises 150 investment streams and 66 reforms. It is designed to support climate objectives (39% of the plan) and foster the digital transition (25.6% of the plan). The transformative impact of Italy’s plan stems from a robust combination of reforms and investments that address the country’s specific challenges. The reforms aim to eliminate obstacles to lasting and sustainable growth, while the investments are targeted at promoting the digital and green transition and addressing social and territorial disparities. 

All measures must be implemented within a strict timeline, as the Regulation establishing the Recovery and Resilience Facility mandates that all milestones and targets within the national plans be completed by August 2026. Italy’s recovery and resilience plan supports the green transition with significant investments in sustainable mobility (€34.5 billion). 

These investments are complemented by crucial reforms aimed at deploying charging points for electric vehicles, increasing competition in the electric market, improving the functioning of concessions in Italian ports, and simplifying various legal frameworks for accelerating energy efficiency interventions and transport infrastructure projects.¹ These investments also strengthen the zero-emission railway and bus fleet initiative, security of electricity and addressing energy poverty.²

EV Tax Benefits and Subsidies

Electric vehicles enjoy a five-year exemption from the annual ownership tax from the date of first registration. After this period, they receive a 75% reduction in the tax rate applied to equivalent petrol vehicles in many regions. Purchase subsidies are available for private individuals, with the subsidy amount and additional scrappage bonus varying based on income. These subsidies apply only to brand new vehicles and come with a mandatory holding period. A total budget of €250 million has been allocated for BEVs for the years 2022, 2023, and 2024. 

For companies, benefit cars emitting up to 60 g/km CO2 have been taxed at a lower rate (25%) since 2020. The legislation also introduces different rates based on car emissions, with higher percentages for cars emitting more CO2. These percentages were partially revised in 2021.

Some regional governments, especially in northern Italy, have introduced incentives for the purchase of alternative fuel cars and commercial vehicles (up to 7- 12 tons). The amount of the incentive usually depends on the type of fuel or power source. A regional subsidy in Lombardy offers a maximum subsidy amount of €4,000 (or €1,000 without vehicle scrapping) for vehicles with a maximum net retail price of €45,000. Lombardy has also adopted an incentive scheme based on the combination of NOx and CO2 values. 

A tax credit is granted to taxpayers who install EV charging infrastructures up to 22 kW. It amounts to 50% of the purchase and installation cost up to €3,000, to be split into ten equal annual tranches. Other financial benefits include free access to the limited traffic zone (LTZ) and free parking in many urban centres for hybrid/electric cars.³

_{1 Italy’s recovery and resilience plan - European Commission (europa.eu)} 

_{2 Italy’s recovery and resilience plan - European Commission (europa.eu)} 

_{3 Incentives and Legislation | European Alternative Fuels Observatory (europa.eu)}

In 2021, the Italian government partnered with Siemens Smart Infrastructure to initialize smart charging facilities in Rome. The project commenced with 23 charging stations that operate on cloud-based charging infrastructure software. 

BluBrake, an Italian e-mobility company, has made significant strides in the development of safety technology for electric bicycles. One of their notable innovations is the ABS G2, the second-generation of the e-bike-specific anti-lock braking system1. This system prevents front wheel lock and rear wheel lifting, enhancing the safety of e-bike riders1. The ABS G2 features a single ABS control unit that is small, easy to install, and combined with an artificial intelligence system that adjusts the braking assistance according to the type of terrain1. Compared to its predecessor, the ABS G2 is 65% smaller and 48% lighter, making it easier to integrate into the bike frame. 

In addition to the ABS G2, BluBrake has also partnered with Shimano to develop the Shimano ABS by Blubrake2. This system significantly reduces the risk of front wheel lock-up and rear wheel lift-off, even during panic braking, thus improving the riding experience and reducing the number of accidents2. The ABS can be fully integrated into the frame of e-bikes and e-cargo bikes and is compatible with a wide range of Shimano brakes and electric kits. These technological advancements by BluBrake have contributed to making mobility safer and more sustainable.¹

_{1 Italian e-mobility scaleup Blubrake lands €5.2 million to expand its innovative safety tech for e-bikes | EU-Startups}

Road Infrastructure 

The complexity of Italy’s road infrastructure is largely due to the country’s unique morphology and orography. 

This is evidenced by the fact that 60% of the tunnels planned for the TEN-T networks are located in Italy. 

This geographical feature also results in a lack of intermodal connections and last-mile and penultimatemile links, particularly in inland and peripheral areas. 

Many parts of the Italian road network are quite old, with 80% of the motorway network constructed before 1980. 

Furthermore, the accident rate is high, especially in urban areas.¹ 

Crucially, 4 of the 9 European transportation corridors cross Italy - the Baltic-Adriatic Corridor reaches Trieste, the Mediterranean Corridor crosses Italy from Turin to Trieste, the Scandinavian-Mediterranean Corridor crosses the Brenner pass reaching Augusta and the Rhine-Alpine Corridor connects Genoa with the North Sea Ports.² Alongside international corridors, the Ministry of Infrastructure and Transport is seeking to develop regional and national infrastructure networks. The National Operational Program on Infrastructures and Networks invested in railway infrastructures, port infrastructures and intelligent transport systems. The focus of these connections is a result of linking the railway to the South of Italy which currently has limited connections.^3-4

EV Charging Infrastructure 

Ewiva, a joint venture between Enel X Way, a company of the Enel Group dedicated to electric mobility, and the Volkswagen Group, aims to establish a high-power charging (HPC) network of 3,000 charging points across Italy. Each charging point will have up to 350 kW capacity and will be 100% powered by renewable energy, making them accessible to all electric vehicle drivers. 

The launch of Ewiva signifies the continuation of the successful collaboration between the Enel Group and Volkswagen to create a comprehensive e-mobility ecosystem in Italy. Currently, Ewiva is deploying the largest ultra-fast charging network in Italy, with 750 points in 233 locations, supplementing the approximately 17,000 charging points operated by Enel X Way. The joint venture plans to expand its network to 500 locations by the end of 2023, with the goal of reaching 3,000 charging points by 2025. 

Ewiva’s operations will span more than 800 sites, focusing on city centers, suburban areas, and main commuter and tourist routes. The HPC network will be available to drivers of all types of electric vehicles, regardless of the manufacturer.⁵ 

Rail Infrastructure

Italy’s railway infrastructure is among the most electried in Europe (72% of the rail network, compared to the EU average of 56%) and among the safest (0.19 signicant accidents per million kilometres, compared to the EU average of 0.49). However, Italy's rail infrastructure is less extensive than the European average, with less than 300 kilometres of track per million inhabitants, compared to an average of more than 450.⁶

_{1 CDP, Transport Sector Policy (cdp.it)} 

_{2 Activities and Projects | Ministero delle infrastrutture e dei trasporti (mit.gov.it)} 

_{3 Eurostat, Total Length Motorways} 

_{4 Press Releases - Blubrake} 

_{5 Ewiva: high power charging network in Italy | Enel X Way} 

_{6 Transport Sector Policy (cdp.it)}

The industry experienced a negative downturn in the registration of new car passengers – with a 9.7% change from 2019 to 2022.¹ On the other hand, in the same year, Italy produced 476,929 cars which is a 6.5% increase from 2019 to 2022. Italy is the 6th biggest vehicle producer in Europe, holding a 1% share of global production and has a fleet age of 14.7 years in the light commercial vehicles category², making it one of the oldest in the EU-market. The ageing fleet of vehicles on Italian roads has a direct impact on pollution levels and human health. With 681 cars per 1000 inhabitants, Italy ranks second after Cyprus. With little over 40 million cars on the road, Italy also has the 2nd largest passenger vehicle fleet in the EU, after Germany.³ The sales of electric cars fell by 26.9% in 2022, falling to 3.7% in comparison to the 12.1% average in the EU,⁴ reflecting on the resistance from Italian consumers on the adoption of electrification in the automotive industry. 

Despite the recent decrease in sales, the Italian market for electrical vehicles increased from 0.04% in 2012 to 4.6% in 2021 – this margin represented one of the biggest market growths in Europe. In 2018, the Italian Government announced plans to invest €10 billion as an incentive to put a million EVs on the roads of Italy by 2022, in practice it managed to achieve only 244,944 EVs in circulation.⁵

_{1 Economic_and_Market_Report-First_three_quarters_of_2023-1- 1.pdf (acea.auto)} 

_{2 ACEA-Report-Vehicles-on-European-roads-.pdf} 

_{3 ACEA-Report-Vehicles-on-European-roads-.pdf}

_{4 Italy leads revolt against Europe's electric vehicle transition - CBS News}

_{5 Electric Vehicles in Italy: What You Should Know (hivepower.tech)}

Italy has been able to make great progress in sustainable mobility due to constructive relationships between central government and territorial institutions, particularly municipal governments.¹ This has enabled the PNRR to allocate €8.4 billion to green local transportation and rapid mass transportation.² 

Through the projects funded it is projected to save an estimated 2.3 million tons of CO2 emissions per year. 

This includes the development of high-speed and regional lines spanning 700 km, and the introduction of Rapid Mass Transport (RMT) in urban areas with 216 km of new tramlines, metros, and trolleybuses. The plan also involves the purchase of new trains. The renewal of the bus fleet to include electric and hydrogen buses is also part of the plan. This includes 3,200 electric/hydrogen buses for urban areas and 2,000 methane buses for suburban transport. Testing of hydrogen for un-electrified railways is also planned, with 50 hydrogen trains in the South and Val Camonica. For smoother mobility, 1,800 km of tourist and urban cycle routes are planned to be introduced.³ 

When it comes to the use of public transport, Italy has a usage rate of 11% for daily trips, which is the lowest among major European countries. This is partly because Italy’s local public transport is not as developed, with significantly fewer metro services and tramways compared to other European nations. For instance, the national metro services in Italy, which span less than 250 km across seven cities, cover a smaller area than the metro services in Madrid alone, which extend nearly 300 km. 

The Ministry of Transportation highlighted the focus of the Ministry of Sustainable Infrastructure and Mobility in investing vast amounts in the extension and planning of metro lines – as the Italian metropolitan system is not as developed as other cities. For instance, the PNRR is funding the Salerno-Reggio Calabria and Brescia- Verona-Padua railway lines⁴, as currently only 4 out of the 5 metro lines work which is still minimal for big cities in popular tourist locations.

_{1 The Italian way to new mobility? Restarts from safety - InfraJournal} 

_{2 Ministry of Sustainable Infrastructures and Mobility, Ten years to transform Italy 2021-2027 (governo.it)} 

_{3 Ministry of Sustainable Infrastructures and Mobility, Ten years to transform Italy 2021-2027 (governo.it)} 

_{4 The Italian way to new mobility? Restarts from safety - InfraJournal}

In Italy, the transport sector is responsible for 25% of total greenhouse gas emissions and 30% of CO2 emissions, with 92% of the latter directly attributable to road transport.¹

_{1 The evolution of the automotive sector in Italy. (romebusinessschool.com)}

The key macroeconomic challenges for the Italian economy include slow productivity and economic growth, high structural unemployment and low labour market participation.1 The government invested €41.8 billion from the Recovery and Resilience Fund² The Italian automotive sector, recorded €18 billion in the export of new vehicles in 2022, including cars and industrial vehicles (+11% vs. 2021) and €23,5 billion in the export of components (+7% vs. 2021).³ The automotive and mobility industry has a significant influence on the Italian economy, and as Chinese competitors have started importing vehicles on the European market, the Italian government lobbied the European Union to impose retroactive tariffs towards Chinese EV brands to offset the cheaper raw material and manufacturing costs in China⁴. 

In 2023, Italy counted 280,000 employees in the automotive sector which added to 5.3% of their GDP, the European Association of Automotive Suppliers warned that the EV industry will result in a loss of 60,000 jobs in Italy by 2035 for automobile suppliers alone.⁵ However, in a contradictory statement, researchers from the Rome Business schools predict that as a result of the transition to electric power the employment will rise to 296,800 jobs by 2030.⁶

_{1 Italy’s recovery and resilience plan - European Commission (europa.eu)} 

_{2 NRRP: 62 billion euros allocated to MIMS for sustainable mobility, infrastructures and logistics, 56% to the South | Ministero delle infrastrutture e dei trasporti (mit.gov.it)} 

_{3 Italian Trade Agency, Automotive (2022)} 

_{4 EU set to allow possible retroactive tariffs for Chinese EVs | Reuters} 

_{5 Italy leads revolt against Europe's electric vehicle transition - CBS News} 

_{6 The evolution of the automotive sector in Italy. (romebusinessschool.com)}

The Italian government established a structure of independent experts – STEMI – aimed to identify opportunities and scenarios for the transport sector which align with the European and National targets¹. 

The end goal seeks to formulate policy recommendations for ecological transition in the transport and environmental areas, which looks to assess the feasibility of the European Green Deal and decarbonizing the transport sector.² 

Within the STEMI report, the five main indices seek to enhance sustainable transport, improve energy efficiency and decarbonise transport during infrastructure developments.³

_{1 Ministry of Sustainable Infrastructures and Mobility, Decarbonising Transport (2022)} 

_{2 Ministry of Sustainable Infrastructures and Mobility, Decarbonising Transport (2022)} 

_{3 Ministry of Sustainable Infrastructures and Mobility, Decarbonising Transport (2022)}

Italy’s Recovery and Resilience Plan, with its robust combination of reforms and investments, is poised to significantly transform the country’s socio-economic landscape. The plan’s emphasis on supporting climate objectives and fostering digital transition indicates a clear shift towards sustainable growth and modernization. Significant investments in sustainable mobility and the deployment of electric vehicle charging points underscore Italy’s commitment to the green transition. The plan also highlights the importance of technological advancements, as seen in the partnership with Siemens Smart Infrastructure for smart charging facilities and BluBrake’s development of safety technology for electric bicycles. 

The rise of electric vehicles (EVs) is a notable trend, supported by tax benefits, subsidies, and the development of EV charging infrastructures. However, the market faces challenges, including a recent decrease in EV sales and resistance from Italian consumers towards electrification in the automotive industry. On the infrastructure front, there is a clear focus on improving road and rail networks, with significant investments planned for the extension and planning of metro lines. The transport sector’s environmental impact is also being addressed, with the sector responsible for a significant portion of Italy’s greenhouse gas and CO2 emissions. The government’s investment in the Recovery and Resilience Fund and the automotive sector’s contribution to Italy’s GDP highlight the economic implications of these trends. The potential job losses in the automobile supplier sector due to the rise of EVs is a concern, although some predict an increase in employment due to the transition to electric power.

The first Futurmotive Expo & Talks was launched on November 16, 2023 in Bologna, Italy, attracting significant attention from Italian authorities and a diverse group of over 158 exhibitors and participants from key nations in the automotive industry. The event is designed to be a global stage for promoting innovation in sustainable practices and applications in the automotive field. It was oraganized by Promotec, with backing from the Italian Ministry of Foreign Affairs and International Cooperation (MAECI) and the Italian Trade Agency (ICE). 

The event’s main objective is to facilitate discussions on energy transition and sustainability-driven innovation in the automotive industry, and to cultivate business opportunities centered on sustainability. The organizers view these subjects as significant trends in the industry with substantial potential for ongoing expansion. 

Delegations present includes a variety of profiles such as OEMs, startups, associations, clusters, R&D companies in the new mobility sector, importers/distributors, and journalists. The represented countries include Sweden, Norway, the United Kingdom, Spain, the United States, Japan, Korea, Indonesia, Poland, and China.¹

_{1 Automotive Companies Gather at Futurmotive in Italy (mexicobusiness.news)}