Automotive Fund: 300 million for “low emissions,” not just electric vehicles
The Automotive Fund is taking shape. After the first call for applications for light commercial vehicles – with another following each year until 2030 –; and after announcements on social leasing that will have to wait until spring 2027 along with those for charging stations, the first batch of development contracts has arrived. This constitutes the largest portion of the Fund: 70% of 1.343 billion for the period 2026–2030, plus the remaining funds from 2025.
Today, Minister Adolfo Urso announced a decree allocating 300 million for businesses. Note that, as we have already seen with vans and social leasing, these funds are not exclusively for electric vehicles. The statement mentions low emissions as a goal; while decarbonization is cited as the objective, this does not automatically mean electrification. Thus, hybrids are also permitted. This approach has been criticized by the Court of Auditors.
300 million to be allocated to businesses, including small ones
The tool chosen by the Ministry of Business and Made in Italy to fund businesses with 300 million is the mini development contracts. Approval was given following the signing by Minister Urso, building on the dedicated decree issued on June 10 that reallocated funds from the Automotive Fund.
"To facilitate the green transition," writes the Ministry, "funding is provided for the development of advanced technologies for sustainable, autonomous, connected, intelligent, and safe mobility, in line with Europe’s goals of decarbonization and reducing emissions in the transportation sector." The focus is not limited to propulsion systems, and the term "electric" is omitted.
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"With this measure, we provide all companies in the industry chain with a targeted tool to continue investing in technologies and transition, thus supporting the sector through this phase of industrial transformation to meet market demands and protect a key part of Made in Italy," said Minister Urso. The reference is clear: economic sustainability.
Fundable projects, focus on small businesses
In detail, the programs eligible for funding must be aimed at the development, engineering, testing, and production of new vehicles and mobility solutions, as well as low-emission power and propulsion systems; the development of advanced parts, components, systems, and technologies for sustainable, autonomous, connected, intelligent, and safe mobility; or industrial diversification and transformation toward strategic technologies with high research and development intensity.
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Productive investments may be accompanied by industrial research and experimental development projects, as well as staff training programs, with the latter accounting for up to 10% of the total investment. This is acceptable, though these resources are limited given the ambitious goals set.
Regarding the allocation of resources: 60% is reserved for initiatives proposed by SMEs – one quarter of which is allocated specifically to micro and small enterprises – while 40% is designated for programs to be implemented in factories in the South (Abruzzo, Molise, Campania, Basilicata, Calabria, Puglia, Sicily, and Sardinia). Finally, two 10% quotas are reserved for companies that hold a legality rating and gender equality certification.
The incentives will be provided as grant-based funding and subsidized loans, and can cover up to 75% of eligible expenses. Companies may also submit applications jointly, with a maximum of five participants. Applications will be evaluated in chronological order through a two-stage review process. However, the implementing decree is still missing for all details.
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