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Car incentives 2024: all funds exhausted, no new bonuses on the horizon

Ecobonuses for plug-in hybrid cars have ended. No incentives planned for 2025, but Italy proposes a European fund to support low-emission vehicles and protect the “made in Europe” industry

Car incentives 2024: all funds exhausted, no new bonuses on the horizon

Finished. The incentives for the 'car purchase low emission, introduced in June 2024 from the government, I am officially finished. The news comes directly from Ecobonus portal of the Ministry of Enterprise and Made in Italy, which confirmed theexhaustion of funds, including those intended for plug-in hybrid cars. A campaign that has seen a total of almost one billion euros allocated thus ends, leaving the market without new aid for 2025.

2024 Car Incentives: Electric Car Incentives Sold Out Immediately

As early as June 2024, the funds dedicated to fully electric cars (0-20 g/km of CO2) were evaporated in less than eight hours: 201 million euros disappeared in a flash. In October, it was the turn of the 276,7 million euros reserved for vehicles with emissions between 61 and 135 g/km of CO2, which include endothermic, mild hybrid, full hybrid and LPG models. Finally, in December, the 125,7 million for plug-in hybrids (21-60 g/km of CO2) were also completely used.

To complete the picture, the funds had already run out in the previous months for the purchase of used cars, bonuses for taxis and NCC and incentives for the installation of LPG and methane systems. A situation that reflects the strong demand and the growing awareness towards low-emission vehicles, but also theinsufficiency of resources allocated available in relation to market needs.

READ MORE: Electric cars, +25% in 2024 but global market at two speeds

Plug-in hybrid: a complicated market

Among the incentivized vehicle categories, theplug-in hybrid has experienced a particular dynamic. Despite its potential in terms of energy efficiency and cost savings, this technology suffers from two main problems: list prices still high e logistical difficulties related to charging. This explains why the funds for this emissions band lasted longer than those for electric cars, which are much more attractive thanks to more generous bonuses and a greater technological push.

A new direction: no incentives but support for the supply chain

With the end of eco-bonuses, the Italian government has not planned any new campaigns of incentives for 2025. In a recent meeting with Stellantis, Minister Adolfo Urso declared that the residual resources of the Automotive Fund will be destined to support component companies.

However, a glimmer of hope could open up in the second half of the year. Italy, together with other European countries, has submitted to the EU Commission a proposal for the creation of a European fund intended for incentives for the purchase of low-emission cars. The proposal includes a clause in favor of “made in Europe” models, a measure designed to counter extra-European competition and protect continental industry.

The balance of eco-bonuses

The 2024 eco-bonuses have undoubtedly contributed to stimulate the market and at least encourage the adoption of less polluting vehicles. The amount of funds, however, has proved insufficient in relation to the question, highlighting the need for a more ambitious planning and long-term strategies. The transition towards sustainable mobility requires structural investments and effective coordination between national and European levels.

Cars, what to expect for the future?

Il 2025 is shaping up to be a transition year for the Italian automotive sector. Without new incentives, the market could slow down, unless the European Union takes decisive action (which should be expressed by the end of the month). The main challenge remains that of making low-emission technologies accessible to a wider public, while continuing to support the national industry in this crucial phase.

READ MORE: Cars, what's new in 2025

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