An electric car is seen plugged in at a charging point for electric vehicles in Rome, Italy, April 28, 2021. Photo: Reuters
The ministry will offer up to 10,000 euros to individuals and up to 20,000 euros to small firms, covering up to 30% of the total purchase price of a new electric car or commercial vehicle.
The subsidies, financed by European Union's post-COVID recovery funds, will be restricted to individuals or companies based in larger urban areas with the aim of reducing pollution and improving air quality.
To qualify for the programme, beneficiaries will be required to scrap an internal combustion vehicle of up to the Euro 5 emission class, dating from 2015 or earlier, the ministry said.
EV sales are struggling in Europe, hindered by high prices and lack of charging stations, even as the EU is using regulations in an effort to phase out combustion engine cars to meet carbon emissions goals.
In Italy, battery electric vehicles accounted for only 6% of new car sales in June, compared to more than 15% across the European Union.
Next year, the bloc is due to review its ban on the sale of new petrol and diesel cars from 2035 under pressure from the auto industry and some national governments to slow the transition.
