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The Italian new-car market has witnessed a significant decline in June 2025, with overall registrations dropping by 17.4% year-on-year, according to recent data. This downward trend, which includes battery-electric vehicles (BEVs), has raised concerns and sparked calls for specific solutions.

The decline in car sales can be attributed to several factors. New car sales have been on a steady decline since pre-pandemic 2019, with a 21.1% drop recorded in the same period. Private consumer sales have also plummeted by almost 30%, indicating weaker demand from individual buyers who are key drivers of the market, including BEV uptake.

One of the most affected brands in Italy is Fiat, a key domestic player. Fiat's sales have dropped by 14% in the first half of 2025 compared to last year, largely due to an aging product lineup, with models like the Fiat Panda contributing to this issue.

Despite the overall car market's decline, BEVs are slowly gaining market share in Italy. They are projected to reach 39.6% in 2025 versus 32.5% the previous year. However, the general decline in registrations (-15.4% year-to-date in 2025) suggests that growth in BEVs is not yet sufficient to offset losses elsewhere.

Broader economic and political uncertainties in Europe, including Italy, are also contributing to weaker consumer confidence and reduced spending on new vehicles, including electric ones.

To combat this, Italy plans to enhance BEV incentives, encourage product innovation, and capitalize on growing leasing and rental segments to revive the market and boost electric vehicle adoption. The government is banking on these strategies to stimulate demand for BEVs and other electrified vehicles, and to help stabilize or grow the market share of BEVs.

Italian manufacturers, notably Fiat, need to update and diversify their model ranges, particularly electric models, to better meet consumer expectations. The success in markets like Brazil, where Fiat offers affordable, locally adapted models, suggests Italy could benefit from a more competitive and relevant product lineup domestically.

While private sales are declining, there has been growth in long-term leases (up 4%) and short-term rentals (up 36.6%). Leveraging these channels could help sustain overall sales volume and increase exposure of more consumers to BEVs.

Addressing broader economic conditions, such as reducing uncertainty and encouraging consumer spending, would also support market recovery. The industry body UNRAE has highlighted a need for increased availability and policy towards EV charging infrastructure in Italy.

In conclusion, the Italian new-car market's decline, including in BEVs, stems from poor private sales, outdated product portfolios, and broader economic uncertainty. To combat this, Italy plans to enhance BEV incentives, encourage product innovation, and capitalize on growing leasing and rental segments to revive the market and boost electric vehicle adoption.

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2. Energy efficiency in manufacturing industries is a hot topic, with many companies aiming to reduce their carbon footprint through the use of renewable energy.
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8. Transportation is undergoing a transformation as electric vehicles (EVs) become more mainstream, reducing dependence on oil-and-gas.
9. Leadership in renewable energy is crucial, as leaders must make tough decisions and set ambitious goals for a sustainable future.
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18. The automotive industry is facing disruption as electric vehicles gain popularity, with traditional companies like Tesla leading the way.
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27. The housing market is evolving, with homes increasingly designed to be energy-efficient and eco-friendly, reflecting the growing emphasis on sustainable living.

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