Plug-in electric vehicles in Italy

Since 2017, the electric vehicle (EV) market in Italy has transitioned from a marginal niche into a significant segment of the national automotive industry. The market's evolution has been characterized by an early phase of exponential growth (2017–2021), a period of stagnation influenced by energy costs and supply chain volatility (2022–2023), and a definitive structural rebound in 2025.[1] As of 31 December 2025, battery electric vehicle (BEV) registrations reached an all-time high of 94,973 units. This recovery culminated in a record-breaking December 2025, where BEVs captured 11.1% of the monthly market—the highest share to date—following a surge in government-backed incentive applications.[2]

The total circulating fleet of battery electric vehicles and PHEVs in Italy reached 365,091 units.[3] Despite a 2.1% contraction in the overall automotive market in 2025, registrations of rechargeable vehicles reached a combined market share of 12.7%. BEV registrations specifically grew by 46.1% compared to 2024, achieving a record 6.2% annual market share.[1]

Lombardy remains the regional leader in Italian EV adoption, accounting for nearly 30% of national BEV registrations. In Milan, car-sharing services were required to phase out gasoline-only vehicles starting in 2024 to comply with local environmental regulations.

Timeline of adoption

Emergence (2017–2019): Characterized by early adoption and limited infrastructure, with market share remaining below 1%.

Initial Expansion (2020–2021): Despite the COVID-19 pandemic, the market quintupled in share as the first major national incentive schemes were introduced and mainstream models, such as the Fiat New 500, entered the market.

Stagnation (2022–2023): A combination of high electricity prices and the exhaustion of incentive funds led to a temporary dip in volumes, though market share remained relatively stable as the overall combustion engine market contracted.

Recovery and Growth (2024–2025): The introduction of means-tested "Ecobonus" vouchers (offering up to €11,000) and a surge in corporate fleet electrification drove registrations to their current peak.[1]

New battery electric vehicle registrations in Italy (including PHEVs)
Year Total BEV registrations Market share
2017 2,022 0.1%
2018 4,996 0.3%
2019 10,566 0.5%
2020 59,946 2.3%
2021 67,500 4.6%
2022 49,536 3.7%
2023 46,642 4.2%
2024 64,500 4.2%
2025 94,973 6.2%

Top-selling models

The market in 2025 was dominated by Tesla and new entry-level international models.[4]

Top 5 Best-Selling BEVs in Italy (2025)
Rank Model Units Sold
1 Tesla Model 3 7,114
2 Leapmotor T03 6,242
3 Tesla Model Y 5,676
4 Dacia Spring 4,813
5 BYD Seagull 4,563

Government policy and incentives

In 2025, Italy transitioned from simple purchase subsidies to a mix of targeted vouchers and tax-based corporate incentives.

  • Purchase Subsidies: The Ministry of the Environment and Energy Security (MASE) managed a voucher scheme in 2025 that offered up to €11,000 for low-income households scrapping older vehicles. Approximately 55,700 vouchers were utilized before the program's exhaustion.[2]
  • Company Car Reform: From 1 January 2025, the taxable value (fringe benefit) for company cars was adjusted to favor electrification: 10% of the standard amount for BEVs and 20% for PHEVs, compared to 50% for internal combustion vehicles.[3]
  • Tax Exemptions: BEVs remain exempt from the annual ownership tax (bollo) for the first five years nationwide. In regions like Lombardy and Piedmont, this exemption is permanent.[3]

Under the EU's December 2025 "Automotive Package," Italy began preparing for a revised 2035 target of 90% emission reductions, allowing a 10% niche for vehicles powered by e-fuels and carbon-neutral biofuels.[2]

Charging infrastructure

The public charging network in Italy grew by 16% between late 2024 and late 2025, reaching over 70,000 public charging points nationwide by the end of 2025.[3]

Installation was accelerated by the EU's Alternative Fuels Infrastructure Regulation (AFIR), which mandated fast-charging stations (≥150 kW) every 60 km along the TEN-T core road network by the end of 2025. Despite this, regional disparities persist; approximately 55-60% of all charging points are concentrated in Northern Italy.[3][5]

Public opinion and barriers

While adoption is rising, Italy continues to lag behind the Western European average (where some markets reached 20-25% BEV share in 2025). Key barriers include:

  • Structural limitations: Many Italian residences are limited to a 3 kW peak power supply, making home charging difficult without electrical upgrades.
  • Affordability: High electricity costs (averaging €0.30/kWh) and the upfront price of vehicles remain concerns for the middle class.
  • Taxation: Industry groups like UNRAE have criticized the lack of a full structural reform of corporate car taxation, which they argue is necessary to match the adoption rates of France or Germany.[1]

References

  1. ^ a b c d "Auto elettriche, in Italia +46% nel 2025 ma serve una riforma fiscale per colmare il gap europeo". ilsole24ore.com. 3 January 2026. Retrieved 27 January 2026.
  2. ^ a b c UNRAE (2 January 2026). "Mercato auto Italia: dicembre a +2,2%, ma il 2025 chiude in flessione del -2,1% a 1.525.722 unità". unrae.it (in Italian). Archived from the original on 2 January 2026. Retrieved 27 January 2026.
  3. ^ a b c d e "Italy's EV Market in 2025: BEVs Rebound, PHEVs Surge, Infrastructure Expands". alternative-fuels-observatory.ec.europa.eu. 20 January 2026. Retrieved 27 January 2026.
  4. ^ Barontini, Francesco (2 January 2026). "Le auto elettriche più vendute in Italia nel 2025". InsideEVs Italia. Retrieved 27 January 2026.
  5. ^ "EV Charging Index 2025: Expert insight from Italy". rolandberger.com. 1 October 2025. Retrieved 27 January 2026.