Italy 2020. Scrap incentives will be introduced in July

Italian Auto Market

Italian Auto Market has progressively recovered during May and June, which reported a 22% lost due to the fall of short term rental and consumers demand in stand by while the Italian Parliament was discussing over the opportunity to introduce a scrap incentive scheme to support the industry

Market trend in June

Rumors on possible introduction  of a scrap incentives for vehicles older then 10 years, have reduced the demand in June. In addition, the short rental registrations were down over 60% due to the fall in tourism and business activities.

Said this, June registrations at 133.104 units, down 22.8% should be considered positively, while all the Italian press and industry association kept to cry asking for the incentive introduction with apocalyptic tones, finally winning their mediatic games with the government, which is very close to introduce a robust incentive to support the industry.

Post Covid19 Market Trend

A new era started in March for the entire World and the immediate effect of measures taken by Italian government to counteract the spread of the virus have blocked any commercial activity in the country. After China, Italy was the first large country hit by the virus and despite the immediate actions taken by the government, the country is paying a huge contribution to this war.

As far as the commercial and industrial activities, they are shut down since March 9th. As a result, March sales crumbled 85.3%, ending the Q1 at 348.329 units (-35.2%).

However, as expected, in April the market halted almost completely as lockdown measures were held for the entire month, thus registering only 4.320 units (-97.5%). This was the lowest Italian monthly sales volume in over 60 years.

Since Covid-19 stroke Italy earlier than most of the other European countries, lockdown measures were eased earlier as well. The official start of the “Stage 2” after the Anti-Covid1 national lockdown, allowed the vehicle market to significantly improve in May compared to previous months, going back above 100k monthly sales. Indeed, 100.385 units were registered in May (-49.3%), leading Year to Date figures to 453.034 (-44.3%).

Medium Terms Market Trend

Following the deep lost during the 2008-2011 crisis, when market fell down from 2.4 up to 1.4 million units, the Italian vehicles market recovered in the period 2012-2017 reaching back the 1.96 million cars (plus LCVs to arrive at a total light vehicles market of 2.14 million). Back at the physiological level, the market growth ended and a new phase, moderately declining, started in the 2018, when sales declined 2.6% while holding a flat trend in 2019 with 1.92 million units sold.

In 2020, according to data released by the Italian Minister of Transportation, the market was back on a negative path with Year to Date February sales at 319.745 units, down 6.9%.

Tables with sales figures

In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models

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