Italy's car market grapples with tax hike on company vehicles, dealer awards and incentive payout delays

The Italian government announced a corrective fiscal decree that will raise the tax on diesel and gasoline company cars older than five years by 50% and increase the fringe‑benefit valuation of optional equipment by 5%, aimed at accelerating fleet renewal and cutting emissions.

In Milan, the third edition of the Dealer Awards was held at Palazzo Bovara, recognising Italian automotive distributors across six categories. Organisers highlighted the recent growth in electric and hybrid vehicle sales and warned that a slowdown in the Chinese market could increase the presence of Chinese‑made cars in Europe.

Meanwhile, many buyers of new electric cars are experiencing delivery delays because dealerships are waiting for state ecobonus reimbursements that have been stalled by technical problems. The funding gap is pressuring smaller dealers and prompting industry groups to demand faster, more reliable refund procedures.