The Chinese Force in Italy's EV Market – Structural Opportunities Behind the 336% Sales Surge in 2025

In 2025, Italy's automotive market underwent a silent structural transformation. Full-year new vehicle registrations reached 1.525 million units, a year-on-year decline of 2.1 percent. However, against the backdrop of a slightly contracting overall market, Chinese brands achieved counter-trend explosive growth. According to analysis by the Italian automotive industry union Uilm based on UNRAE data, Chinese brands' pure electric vehicle sales in Italy reached 18,300 units in 2025, a 336 percent surge from 4,200 units in 2024. This means that one in every five electric vehicles sold in Italy is made in China.

Chinese brands' share of Italy's EV market jumped from 6.4 percent in 2024 to 19 percent. Including all powertrain types, Chinese brands' combined market share doubled from 3 percent to 6.5 percent, approaching 100,000 units in sales volume. Among them, BYD performed particularly strongly, with sales in Italy approaching 24,000 units in 2025, an approximately eightfold increase from fewer than 3,000 units in 2024.

This growth is no accident. The Italian government's Ecobonus EV subsidy policy is one of Europe's most generous incentive measures. Under the 2026 policy framework, low-income households scrapping old vehicles can receive up to 11,000 euros in subsidies for purchasing EVs, while middle-income households can receive up to 9,000 euros. Subsidies are deducted directly by dealers from the purchase invoice, significantly reducing consumers' actual purchase costs.

Chinese brands have seized this policy window. Taking an EV priced at 35,000 euros as an example, a low-income household pays only 24,000 euros after receiving an 11,000 euro subsidy. This price advantage has placed Chinese brands in a favorable position in competition with European domestic brands.

However, opportunities and challenges coexist. The EU's anti-subsidy tariff policy on Chinese electric vehicles continues to evolve. In early 2026, the European Commission published guidance on price undertaking applications, allowing Chinese companies to commit to minimum import prices and annual export volume caps in exchange for exemption from anti-subsidy duties. This soft-landing solution provides a buffer for Chinese automakers, but also sets new thresholds through price commitments, requiring companies to manage their EU market pricing strategies with greater precision.

On the localization front, Chinese automakers are accelerating their布局. BYD is in talks with Stellantis Group to discuss taking over its underutilized European plants, with potential locations including Italy. Stellantis has partnered with Leapmotor to jointly produce a compact electric vehicle in Italy, expected to begin production in 2028. Meanwhile, Chinese battery component company Zz Tech signed a joint venture agreement with Italy's Mevis Group in Vicenza to produce battery cell casings and closures in Slovakia, targeting production in late 2027 to early 2028.

These developments indicate that China's automotive supply chain is transitioning from complete vehicle exports to European local manufacturing. Tariff barriers cannot stop the trend of Chinese automakers' localization; instead, they are accelerating their entry into the European manufacturing system.

For Italian B2B dealers and importers, the current market environment is full of opportunities while also imposing higher requirements. Those who can consistently secure compliant vehicle sources, precisely match Italy's subsidy policies, and control overall costs through efficient logistics will build competitive barriers in this market reshuffle.

LHZ Auto Italy Operations Center focuses exclusively on B2B wholesale, covering complete vehicle deep customization export and parts wholesale. Backed by the Group's Nansha Port maritime channel to major Italian ports, and the LHZ China-Europe Railway Express directly reaching all of Italy, LHZ Auto provides Italian dealers and importers with full-chain services from direct vehicle sourcing, compliance certification, to customs clearance and delivery, while also covering ancillary wholesale of auto parts, charging stations, and energy storage equipment. Against the backdrop of Italy's rapidly growing EV market, a stable and controllable supply chain is itself the greatest competitiveness.


FAQ

Question 1: How did Chinese brands perform in Italy's EV market in 2025?

Chinese brands' pure electric vehicle sales in Italy reached 18,300 units in 2025, a 336 percent increase from 4,200 units in 2024. Chinese brands' share of Italy's EV market jumped from 6.4 percent to 19 percent, meaning one in five EVs sold is made in China.

Question 2: What is Italy's Ecobonus EV subsidy policy?

The Italian government provides subsidies for EV purchases. Low-income households scrapping old vehicles can receive up to 11,000 euros, and middle-income households up to 9,000 euros. Subsidies are deducted directly by dealers from the purchase invoice.

Question 3: How is BYD performing in the Italian market?

BYD's sales in Italy approached 24,000 units in 2025, an approximately eightfold increase from fewer than 3,000 units in 2024. BYD has expanded its retail network in Italy to over 100 sales points, covering pure electric and hybrid models.

Question 4: How does the EU anti-subsidy tariff affect Chinese brands?

In October 2024, the EU imposed anti-subsidy tariffs on Chinese EVs. In early 2026, the European Commission published price undertaking application guidance, allowing Chinese companies to commit to minimum import prices and annual export volume caps in exchange for exemption from anti-subsidy duties.

Question 5: What is the localization status of Chinese automakers in Italy?

BYD is in talks with Stellantis to discuss taking over its underutilized European plants, with potential locations including Italy. Stellantis has partnered with Leapmotor to jointly produce a compact EV in Italy, expected to begin production in 2028.

Question 6: What services does LHZ Auto Italy Operations Center provide?

LHZ Auto Italy Operations Center focuses exclusively on B2B wholesale, providing complete vehicle deep customization export and ancillary wholesale of parts, charging stations, and energy storage equipment, leveraging Nansha maritime shipping and China-Europe Railway Express dual channels, providing one-stop solutions from needs analysis to customs clearance delivery.


LHZ Auto Italy Operations Center ｜ Website: www.lhzauto.it ｜ Guangzhou Nansha: 15220000555 ｜ Khorgos: 19259087888 ｜ Email: china@lhzauto.com