Italy Considers New EV Incentives To Level The Playing Field With Chinese Imports

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Italy is thought to be looking for ways to limit the number of EVs from China being sold in the country and may start offering incentives for car purchases that take into account the carbon emissions produced during the manufacturing and distribution process.

Soon after the European Commission expressed concern at the number of Chinese-built EVs being sold across the continent, France proposed new rules where incentives could be offered based on how much energy is used to build and transport them. France’s rules could also vary incentives based on what types of battery an EV has.

Speaking with Reuters, two unnamed sources claim that Italy is considering similar rules to discourage the sale of Chinese EVs which are largely built in factories using coal-generated electricity. Such rules would allow Italy and France to skirt the European Union’s competition rules that do not allow countries to favor local producers. France has claimed that its rules would be legal as World Trade Organization laws allow exemptions for health and environmental reasons.

Were similar rules to be implemented in Italy, they would form part of a broader plan to protect and build the local car industry. The same report adds that the Italian government is pushing Stellantis to increase production in the country back up to 1 million vehicles annually.

Read: German Transport Minister Doesn’t Want EU To Impose Tariffs On Chinese EVs

Word about Italy potentially going down a similar path to France comes shortly after German transport minister Volker Wissing said that he did not support isolationist politics that could hit Chinese EVs with tariffs.

“In principle, I don’t think much of erecting market barriers,” he said. “Today cars are sealed off, tomorrow chemical products, and each individual step in itself makes the world poorer. We have to make sure that we produce our electric vehicles competitively – for Germany and for the world markets.”