Summary
Since 2020, the electric car market has continued to experience strong growth globally, with significant trends emerging in both sales and technological advancements. In 2022, global electric vehicle sales hit a new high, exceeding 10 million cars and accounting for 14% of total vehicle sales. Spending on electric cars soared to over $425 billion that year, reflecting a 50% increase from the previous year. The electric car market value is expected to rise to $1.579 billion by 2030, with a projected 17.7 million cars sold and a CAGR of 17.8%. Despite a global trend, the distribution of market share is uneven, with China dominating at 58% and the United States following far behind at 10%. In Italy, electric cars reached 8.6% of the total car market in 2022, seeing a rise in both fully electric and plug-in registrations. However, the sector has faced challenges, such as the impact of the Ukraine war, which has led to soaring nickel prices critical for battery production and increased electric charging costs, although the average price per kW saw a 31.1% decrease between 2022 and 2023. Electric car maintenance remains cheaper, but selling prices are generally higher due to innovative technology and higher battery costs. Advancements in battery technology, like Tesla's adoption of the 4680 battery type and the potential of solid-state batteries, may lead to cost reductions. Lastly, Italy provides state support for electric vehicle purchases, with substantial grants available for buyers, highlighting the nation's push towards sustainable mobility.
Evolving Preferences in Italy's Electric Car Market
As the global automotive industry shifts towards sustainability, Italy's electric car market mirrors this evolution, seeing significant growth in the adoption of electric vehicles (EVs). Key trends in the market reflect changing consumer preferences, with a notable inclination towards plug-in hybrid electric vehicles (PHEVs) over fully electric vehicles (BEVs). The demand for electric cars in Italy has surged, with sales skyrocketing at an average annual rate of 142.8 percent between 2017 and 2021. The Italian market's predilection for plug-in models is partly driven by the anxiety over the availability of charging stations. Drivers favor PHEVs due to their dual-fuel capability, allowing them to operate on traditional fuel sources when electric charging options are scarce. This flexibility, coupled with lower initial purchase costs compared to BEVs, contributes to their growing popularity. Indeed, in 2021, for the first time, the sales of plug-in cars outstripped those of full-electric cars, a trend that has persisted into 2022 and the early months of 2023. From an economic perspective, the average monthly expenditure of Italian families on car purchases has seen a decline of about 20.2 percent from 2017 to 2021, dropping from approximately €83 to €66. Yet, this downtrend does not correspond to a dip in electric car sales, which have been trending upward dramatically. Moreover, between 2017 and 2021, the share of electric cars in total car sales in Italy leaped from a meager 0.1 percent to a substantial 4.6 percent.
The Italian electric vehicle market is in a dynamic phase with newer models from various segments, including city cars, mini SUVs, and full-size SUVs, entering the market. In recent years, models like the Fiat 500e and Smart ForTwo have been among the top-selling fully electric vehicles, highlighting the significance of compact and eco-friendly designs in urban settings. As the electric car market in Italy reaches new frontiers, consumer behavior continues to evolve, underpinned by environmental concerns, economic factors, and government incentives. With a promising future and an evident shift in preferences, Italy stands at the cusp of a vehicular revolution, driven by the steady rise of electric mobility.
Pioneers and Innovators: The Key Players Shaping Italy's Electric Vehicle Landscape
The electric vehicle market in Italy features a diverse array of manufacturers, each bringing its unique heritage, innovations, and visions for a sustainable automotive future. These key players are pivotal in driving the advancements and adoption of electric mobility in the Italian market.
- Fiat/Stellantis: As one of Italy's most iconic automobile manufacturers with a history stretching back to the late 19th century, Fiat has long been synonymous with the country's automotive industry. Now part of the Stellantis group—a multinational automotive manufacturing corporation—Fiat continues to influence the electric car market with models like the all-electric Fiat 500e, which combines classic Italian design with modern electric propulsion.
- Mercedes-Benz: A name that resonates with luxury and engineering excellence, Mercedes-Benz has been at the forefront of automotive innovation since the dawn of motoring. The German marque's foray into the electric vehicle market is marked by its commitment to combining sustainable mobility with the opulence and performance that define its brand.
- Tesla: An ever-disruptive force in the automotive world, Tesla's vision for electric vehicles has revolutionized the industry. Spearheaded by Elon Musk, Tesla's focus is not just on creating cutting-edge electric cars but also on fostering a sustainable energy ecosystem. With models like the popular Tesla Model Y, the company is driving the push towards an all-electric future.
- Renault: As one of France's most storied car manufacturers, Renault has a rich history and a keen eye on innovation within the electric vehicle space. Their contribution to making electric mobility more accessible is evident in their range of electric vehicles, which cater to a variety of consumers.
- Audi: With its roots in precision German engineering, Audi is known for the tagline "Vorsprung durch Technik" (Advancement through Technology). As the auto industry pivots to electric, Audi integrates cutting-edge technology to create electric vehicles that offer a seamless blend of luxury and electric efficiency.
- Hyundai: South Korea's Hyundai has emerged as a major global automaker that emphasizes reliability and innovation. The company has strategically positioned itself within the electric vehicle market by offering a versatile lineup that appeals to individuals seeking practical, eco-friendly transportation options.
- Toyota: Hailing from Japan, Toyota is a titan within the automotive industry, widely accredited with pioneering the hybrid vehicle market with the introduction of the Prius.
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- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 13/09/2023
Summary and extracts
1 Synthèse du marché
1.1 Introduction
The electric car market is the automotive sector that includes vehicles powered by electric motors and rechargeable batteries. These vehicles provide an environmentally friendly alternative to traditional internal combustion vehicles.
This market offers a wide range of vehicles, including:
- Fully electric cars (Battery Electric Vehicles, BEVs)
- Plug-in Hybrid Electric Vehicles (PHEVs)
- Fuel cell vehicles
- Light electric vehicles for urban mobility
In the early 1900s, one-third of the vehicles in the United States were electric. But the abundance of gasoline and improvements in internal combustion engines reduced interest in e-cars until the 1970s. In 1971, a NASA electric rover landed on the moon. In 2003, Tesla Motors was founded, and in 2004, Elon Musk became a lead investor. Since then, there have been many developments in the electric car industry, such as the use of lithium-ion batteries.[Cobat]
The electric car market in Italy began to gain prominence in the early 2010s, with the introduction of the first electric car models. Key players in this sector include global automakers such as Tesla, Nissan, BMW, and Volkswagen, as well as local manufacturers such as Fiat.
Overall, there were 36,778 electric car registrations in January-July 2023, with a market share of 3.82 percent, compared to 28,372 in 2022 (3.56 percent). The BEV fleet in Italy thus reached 203,873 units.[Safe]
This study focuses on the electric car market in Italy. For detailed information on related markets, such as charging infrastructure or batteries, please refer to the specific studies available in the Businesscoot catalog.
1.2 The international market
Global sales of electric vehicles continue to set new records. During ****, more than ** million cars were sold "on tap," accounting for ** percent of total vehicle sales. Global spending on electric car purchases exceeded $*** billion in ****, up ** percent from the previous year.(***)
By ****, electric car sales are expected to reach ** million, registering ...
1.3 The Italian market
In Italy, the economic value of car manufacturing in **** amounts to ** billion euros. Compared with ****, turnover at the national level fell by **.* percent.
Automobile manufacturing Italy, ****-****, billion euros ISTAT
In Italy, the share of electric cars in the total number of cars stands at *.* percent in ****, down slightly from the ...
1.4 Import-export
The ratio of imports to exports has changed significantly in recent years in Italy. While until **** Italy could be defined as a net importer, as of **** exports of all-electric vehicles are greater than imports. Between **** and ****, the value of exports grew by *** percent year-on-year in the face of ** percent annual growth ...
1.5 Impact of the war in Ukraine
The outbreak of conflict in Ukraine combined with rising demand for semiconductors is threatening the electric car market. The rising price of nickel, a key element in battery construction, has had major repercussions on the cost of production of electric cars. In the aftermath of the Russian invasion, the price per ...
2 Analyse de la demande
2.1 The Italian demand
Between **** and ****, the average monthly expenditure of an Italian family on car purchases dropped by **.* percent. In the span of five years, it went from spending **.** euros per month to **.** euros. (***) The recorded drop in registrations suggests that a further decline will be recorded in ****.
Average monthly expenditure on automobiles Italy, ...
2.2 Demand drivers
The demand for electric cars in Italy is mainly driven by:
Environmental factors: No greenhouse gas emissions, thus contributing to the ecological transition Abatement of noise pollution
Economic factors: Lower maintenance costs due to the lack of a number of components found in internal combustion cars, such as the clutch and ...
2.3 Geographical distribution of demand
To visualize the geographical distribution of demand, a map was created with the number of electric cars by Italian macro-region.
In terms of sales, the Northeast and Northwest occupy the first (***), respectively. The gap with the North remains one of the main obstacles to overcome.
2.4 New trends in demand
In recent years, consumer preference has moved toward plug-in cars. The preference toward this type of car in Italy is mainly justified by the fear of not finding columns at which to recharge their cars. In fact, plug-in cars, unlike full electrics, can also run on internal combustion, powered by diesel ...
3 Structure du marché
3.1 The market
In Italy, the number of people employed in the sector related to the manufacture of automobiles had an uncertain trend between **** and ****. Although it is possible to record an overall growth during the period (***), after **** the trend of employment in this sector is uncertain.
Employment in automobile manufacturing
The number of ...
3.2 The value chain
Regarding raw materials, it is interesting to focus on those used in the production of electric car batteries. Lithium, cobalt and rare earths are the main components of modern lithium-ion batteries within which the energy charge is stored to power the car. Lithium is not a rare element in nature, and ...
3.3 Distribution channels
Distribution channels in the automotive sector in Italy have not changed significantly in recent years, with dealers remaining the main point of purchase and information for most consumers.
Dealers in Italy Italy, ****-****, no. ISTAT
However, technological developments have influenced some consumer behaviors:
Online buying options: several manufacturers offer the possibility ...
3.4 Main Actors
The main automakers in italy
Fiat: is a historic Italian company based in Turin, Italy, founded in **** by Giovanni Agnelli. It is one of the world's leading automakers and has been known for producing a wide range of vehicles, including cars, commercial vehicles and trucks.
Mercedez- Benz: is a renowned German ...
4 Analyse de l'offre
4.1 Type of the offer
The range of electric cars can be divided into two:
PHEV (***) cars: this type combines electric power with endothermic power, enabling one to travel part of one's journey in fully electric mode, after recharging at a charging station. Because it is rechargeable, this type of car is exempt from tax stamps ...
4.2 Prices
Although the cost of maintaining an electric car is, on average, lower than its internal combustion counterpart, the selling price of these cars is higher. The price difference finds motivation in several factors:
Innovative technology High battery costs Investment with a high degree of risk (***) Requires additional efforts in research and ...
4.3 New trends in supply: better batteries and lower costs
Tesla has recently moved forward on the adoption of a new type of battery, the ****. Adoption of this new type means lower production costs, as fewer cells are needed to create the batteries, and increased range due to a ** percent higher energy density than **** cells.(***)
A new trend, not yet adopted ...
5 Règlementation
5.1 Regulatory framework
The regulatory framework for electric vehicles
Directive ****/**/EU: the development and operation of charging infrastructure must comply with competitive market rules with open access to all entities that own and operate charging points in a space open to the public. Delegated Regulation (***) device the emits an artificial sound similar to combustion ...
5.2 State grants
Italy offers significant concessions for the purchase of electric vehicles. The first measures were introduced in **** within the Budget Law, while in **** the "ecobonus" was established. In ****, the Prime Minister's Decree (***) of April *, **** and the Decree Law on Simplifications further expanded the available financial incentives.
Currently, for the purchase of a ...
6 Positionnement des acteurs
6.1 Segmentation
Italian companies:
Foreign companies:
- Stellantis (Groupe PSA et Fiat)
- Mercedes-Benz
- Audi (Volkswagen Group)
- Hyundai Motors
- Toyota
- Tesla
- Renault Groupe
List of charts
- Market value of electric cars
- Market share
- Automobile manufacturing
- Electric and plug-in car registrations
- Import - export auto plug-in
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