Key local/domestic figures:
37,160,000 circulating cars (2017). Average age: 10.9 years.
6,689,911 circulating 2 vehicles (2017)
1,971 million new registered passenger vehicles (2017)
193,812 new registered light commercial vehicles (2017)
204,406 new registered 2 wheeled vehicles (2017)
italy
Summary
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Market Trends & Demand
Alternative fuels vehicles, which include LPG, CNG, electric and bi-fuel (gasoline/LPG or gasoline/methane), account for 11.7% of the registered new vehicles in Italy. Between 2016 and 2017 alternative fuels vehicles increased up to 31.6% and their market quota is expected to weigh over 20% by 2025.
The green turnaround of the Italian-American group, Fiat Chrysler, will push all the business to renew itself. In 2019, 2020 and 2021 this brand is supposed to expand with several new models, such as the Fiat 500 (electric), Maserati D-UV SUV (hybrid) and the Alfa Romeo C – SUV (hybrid).
In 2018, diesel vehicles’ registrations dropped about 12% in the Italian market compared to 2017 and diesel cars’ share of sales fell 26% in November 2018 due to the introduction of WLTP tests (Worldwide harmonized Light Vehicles Test Procedure - concerning pollution and CO2 emissions) and the multiple limitations-prohibitions directed towards diesel vehicles in Europe. In October 2018 the Italian Parliament approved a law concerning the reduction of CO2 emissions from new vehicles of up to 40% by 2030. The Municipality of Rome has prohibited the circulation of diesel vehicles from 2025 and other Italian cities are pushing for stopping Euro 4 vehicles circulating by 2020.
Fuels prices are extremely high in Italy as in many European nations: taxes on gasoline and diesel are high. However, the higher efficiency attained by last generation engines act as a cost reduction factor and prevent some possible users to opt for alternative fuels vehicles.
To enter this market, U.S. exporters need to comply with both the European Union (EU) and the Italian legislations. Italy applies the CCT (Common Customs Tariffs of the EU), which generally is in the form of ad valorem duty rates. Participation in Italian trade shows seems as one of the best ways for finding customers, agents and distributors. Access to market is regulated by EU rules and regulations.
Market Entry & Barriers