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Italy is boosting fleet renewal, but still lags behind the EU average in electric vehicles | Article

The stimulus comes at a time when household disposable incomes are already improving, supported by a highly resilient labor market, annual wage growth of around 3% and inflation below 1%. This is a background that is in principle favorable for consumption. But with household savings rates on an upward trend towards the pre-Covid-19 average of 8%, the package’s overall economic impact could be limited. We expect this to trigger a shift in private consumption in the second half of 2024, with sustainable goods being favored over non-durable goods. The temporary nature of the package, which expires at the end of 2024, also supports this view.

After the online incentive platform opened on June 3, the available amount for pure electric vehicles was exhausted in one day. The rapid absorption of funds (particularly for the purchase of battery electric vehicles) indicates that these incentives are particularly generous, although people also recognize that this is a once-in-a-lifetime opportunity.

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