The Italian government is considering a plan with a total value of 930 million euro to encourage citizens to give up cars with gasoline or diesel engines in exchange for electric vehicles, according to a draft document consulted by Bloomberg.

The package, which is currently being analyzed by the Italian Ministry of Industry, provides financial incentives of up to 13,750 euro to allow citizens with an annual income of less than 30,000 euro to scrap Euro 2 cars, which are old for over 20 years, in favor of new electric cars.

According to the document consulted by Bloomberg, the objective of the plan would be to “transform the car park in Italy, which is one of the oldest in Europe, with at least 11 million Euro 3 vehicles and even older”. Also, the plan would “support families with low incomes in purchasing a car produced in Italy”, the document also states, according to Agerpres.

A spokesperson from the Italian Ministry of Industry revealed that the plan is to be presented at a meeting with representatives of the car industry, which will take place on February 1.

In 2023, car registrations in Italy increased by 19%, up to 1.57 million units, according to data published by the Ministry of Transport. However, the market share of electric cars is lower in Italy than in other major European economies.

At the same time, after several years of sales growth, signals are beginning to spread about a slowdown in sales of electric cars in Europe. German manufacturer Audi, a brand in the Volkswagen portfolio, has decided to revise its plans for the launch of new electric vehicles, in order to avoid putting pressure on factories and dealers in the context of slowing sales. Also, in October of last year, the financial director of Mercedes-Benz Group AG described the competition on the electric car market as “brutal” and unhealthy.