Electric car incentives are back in 2022. The Government: “a billion a year, and they could become structural”

Electric car incentives are back in 2022. The Government: "a billion a year, and they could become structural"

The first rumors arrive from the meeting that the Government announced yesterday, in the rooms of the BET, to make an initial assessment of the performance of the automotive market, and which involved sector associations, trade unions, and obviously political representatives. The Deputy Minister of Economic Development, Gilberto Pichetto Fratin, will direct the work.

What now seems certain, despite being only the first meetings, that incentives for the purchase of new cars will return in 2022, but there is no room for a refinancing of funds for the last months of the year. The supply chain will therefore have to settle for the sales deriving from the deliveries of those who had booked the last tranche of 2021 incentives.

The focal point of the meeting was the study of the new incentives, and the related financial coverage. In general, good news and good intentions arrive, with Pichetto Fratin talking about appropriations for 1 billion euros per year, for the next three years. The government is also evaluating the possibility that the incentives become “structural“, that is, without the need for them to be refinanced every year. This move would have a downside, effectively forcing the executive to immediately freeze the entire sum necessary for the entire three-year period 2022-2023-2024. A political part, led by M5Swould rather have funds available for other interventions, such as the bonus 110%, which in the meantime would generate an important part of the GDP.

Also according to Pichetto Fratin, there could also be a reorganization of the supports, with those to endothermic engines which would run out, in favor of electric engines. There is a social part, especially pushed by the trade unions End-Cisl, which does not want an exclusion from the incentives of internal combustion engines, because, according to them, a too sudden transition to electric could have negative implications. Everyone agrees instead on the need to maintain the mechanism of scrapping to get access to the contributions, or at least to get a higher share.

It should be noted that if the tolerance line of endothermic engines passes, those that are currently incentivized if they belong to the class of emissions between 60 and 135 grams of CO2 per km, Italy would remain one of the few countries, if not perhaps the unique, to encourage polluting engines.

Finally, there was also talk of incentives for the second-hand market, recently introduced and in the odor of comeback also in 2022. Here, too, the unions are doubtful, as they say that “used items do not generate work and employment“, but their idea clashes with that of the dealers’ associations, which instead believe that support for used vehicles is a useful move to move the market and offer tools to track consumer preferences.

In short, there are many issues, with the need to bring many heads to agree, all within the new Budget Law, which, as usual, will also have to contain the provisions on incentives.


About Eshan William 6149 Articles
A 25 years old blogger. Other than gaming, I like watching documentaries and working on cars. A hardcore PC gamer is what I have always been and always will be.

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