As the cost of purchasing a new car continues to rise and push ownership out of reach for many families, Italy has introduced an unexpectedly generous vehicle scrappage initiative aimed at making electric cars dramatically more affordable. This ambitious program offers deep discounts that reduce the price of some EVs to levels rarely seen in Europe today. For example, low-income buyers who trade in an older, pre-2015 vehicle can secure a brand-new Dacia Spring for as little as €3,900, a figure that is nearly unheard of in the current market. The government has allocated €597 million toward this effort, with the goal of boosting national electric vehicle sales to at least 39,000 units by mid-2026. At present, fully electric cars represent only 5.2% of Italy’s automotive market, well below the European Union average of 15.8%, highlighting the country’s need for stronger incentives.
To receive the maximum €11,000 subsidy, buyers must meet several conditions. First, they must dispose of a Euro 5-rated vehicle. Second, they need to reside in a city with over 50,000 inhabitants. Lastly, their household income must not exceed €30,000. Those earning slightly more—up to €40,000 per year—can still access a smaller, yet still valuable, €9,000 discount. Businesses are also included in the scheme, with small companies eligible for incentives covering 30% of an EV’s purchase price, up to a maximum of €20,000 per vehicle.
To make the offer even more appealing, manufacturers have reduced their own pricing. Dacia, for instance, has cut the starting price of the Spring EV from €17,900 to €14,900 specifically for the Italian market. When combined with the full scrappage subsidy, the cost drops all the way to the headline-grabbing €3,900. This entry-level figure corresponds to the Essential Electric 45 version, which features a 44-horsepower motor and a 26.8 kWh battery, capable of delivering a driving range of 225 km. Stellantis has applied similar pricing strategies to the Leapmotor T03, lowering its base price from €18,900 to €15,900. With the same incentive package applied, the T03 can be purchased for €4,900, a price point the brand proudly notes is “less than what you paid for your bicycle,” according to Autonews.
Despite the remarkable affordability these subsidies create, the strict qualification criteria significantly limit how many Italians can actually take advantage of the program. As a result, it remains to be seen whether this initiative will spark a broader transformation of Italy’s electric vehicle adoption or merely offer a temporary boost among the relatively small number of households and businesses that meet all the requirements.