Italy could introduce some auto incentives image

According to the country’s Transport Minister Maurizio Lupi, the Italian government is mulling the introduction of tax breaks to buoy the frail recovery in Europe’s fourth-biggest auto market.

Although sales have been modestly recovering in recent months, Italy – despite its size as an auto market – suffered the worst beating since the Second World War and many analysts and observers question the sustainability of the new car sales growth.

“We are thinking of using fiscal levers to encourage a renewal of our car stocks,” said Lupi. “We are evaluating this project because that is what it means to have an industrial policy for this country.”

The official gave no further details to the measures that would be taken, but added he is scheduled to hold a meeting together with Industry Minister Federica Guidi to discuss the measures – aimed at both personal buyers and owners of vehicle fleets. Local auto association ANFIA warned last month that although new car purchases rose 4% from June 2013, that month was actually the lowest since 1978. Executives and observers alike said the government measures would be welcomed. They gave as a positive example Spain, where an ongoing scrappage scheme has boosted sales to double-digit increases the past few months.

Via Automotive News Europe