Italy Automotive Fund 2030: MIMIT Unveils €1.6 Billion Plan to Support Auto Supply Chain

On January 30, the Italy Automotive Fund framework was outlined as the Ministry of Business and Made in Italy presented its renewed Automotive Fund program during a high-level roundtable involving automotive manufacturers, suppliers, unions, employer associations, and regional authorities. The discussion positioned Italy’s automotive strategy within the broader European regulatory and industrial transition.

Policy Context and European Emissions Framework

The roundtable centered on Italy’s approach to the ongoing revision of EU carbon emission rules and the European Commission’s proposed adjustments. Participants examined how these regulatory changes could reshape competitiveness, production planning, and long-term investment decisions across the domestic automotive sector.

Industrial Strategy and National Positioning

Attention was placed on aligning future industrial policies with European objectives while safeguarding Italy’s manufacturing base. The dialogue emphasized maintaining production volumes, protecting employment, and enabling suppliers to adapt to electrification and low-emission technologies without disrupting industrial continuity.

Supply Chain Investments and Funding Allocation

A key focus of the Italy Automotive Fund is supply chain reinforcement. During the meeting, it was confirmed that more than EUR 7 billion in goods were sourced from Italian suppliers in 2025, with the same level of procurement expected to continue in 2026, signaling sustained confidence in domestic capabilities.

Automotive Fund Structure Through 2030

A new Prime Ministerial Decree was introduced to define Automotive Fund spending through 2030. Approximately EUR 1.6 billion will be deployed, with around 75% dedicated to supporting the supply chain. The largest share will be directed to Innovation Agreements, including EUR 750 million earmarked specifically for automotive R&D activities.

Production and Development Contracts

Beyond research funding, Development Contracts will support production-related investments. Particular emphasis will be placed on smaller-scale “mini-contracts,” designed to improve accessibility for small and medium-sized suppliers seeking modernization and capacity upgrades within constrained investment cycles.

Demand-Side Measures and Market Stimulation

The Italy Automotive Fund also incorporates demand-oriented initiatives aimed at accelerating fleet renewal and infrastructure readiness. Financial support will be provided for eco-bonuses covering light commercial vehicles, L-category vehicles, and vehicle retrofitting programs aligned with emissions reduction goals.

Infrastructure and Social Leasing Support

Additional funding streams will back charging station deployment and long-term social leasing schemes, addressing both infrastructure gaps and affordability challenges. These measures are intended to stimulate market uptake while ensuring a balanced transition for consumers and commercial operators. The full package is reinforced by national budget provisions, including the Transition Plan 5.0 and renewed resources under the New Sabatini Law, creating a coordinated policy framework that links industrial investment, innovation, and demand incentives under the Italy Automotive Fund through the end of the decade.