Prime Highlights:

• Southern European countries like Italy, Greece, and Poland are offering the most generous incentives to encourage electric vehicle (EV) adoption.
• Nordic countries such as Norway and Denmark have the highest EV market shares, even without large direct purchase incentives, due to tax exemptions and other benefits.

Key Facts:

• Italy’s new EV program starting in October 2025 offers up to €11,000 or 30% of a car’s price for vehicles under €42,700.
• Europe aims to reduce CO2 emissions from new passenger cars by 55% by 2030, driving policy changes across member countries.

Key Background:

European countries are offering more incentives to encourage people to buy electric vehicles (EVs). While all EU countries provide some support, Southern European countries give the most generous direct purchase incentives.

Italy will launch a new EV program in mid-October 2025, giving up to €11,000 or 30% of a car’s price for cars under €42,700. The exact amount depends on the buyer’s income. Despite such incentives, EV sales in Italy remain low, and battery electric vehicles (BEVs) represent only 5.2% of the market between January and July, which is lower than the 15% in the EU.

Greece and Poland also rank among the most generous. Greece offers subsidies of up to 9,000 and an additional 2,000 on the scrapping of older polluting vehicles, and 1,000 to purchasers below 29 years. BEVs in Greece are exempt from registration tax, and the lowest-emitting models are free from circulation tax. Poland matches the €9,000 subsidy and charges no registration tax for EVs. BEV market shares in Greece and Poland are 5.3% and 5.4%, respectively.

Other countries with strong support include Slovenia, where buyers can get up to €7,200 toward a new BEV priced up to €35,000. In Spain, buyers receive €4,500–€7,000 for BEVs, along with personal income tax reductions and lower road taxes.

However, even without significant direct incentives, the number of EVs adopted in Nordic countries is the highest. Norway and Denmark have the highest EV adoption in Europe, with BEV market shares of 94.1% and 64.3%. This is supported by exemptions from VAT, registration fees, and CO2-based car taxes.

Some countries are changing their EV policies. Austria has removed individual incentives. Sweden will provide a 4938 subsidy to low-income families in rural areas that will start in January 2026. France will increase EVs by European manufacturers by adding to a sum of 1,000 under 47,500 euros, and Finland might launch a scrappage scheme up to 2,500 euros.

These measures are part of Europe’s plan to cut CO2 emissions from new cars by 55% by 2030, moving toward greener transportation.

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