Italian sales fall 11% in July as buyers await crisis incentives

MILAN -- New-car sales in Italy fell 11 percent in July, according to data from the country’s transport ministry, as buyers waited for government incentives coming in August to buy a new car.

There were 136,455 registrations in the month, the ministry said. 

Sales fell 23 percent in June, the first full month in which dealer showrooms were open again after coronavirus restrictions. Showrooms gradually reopened starting May 4 after being closed for nearly two months.

Sales were down 42 percent through July to 720,620 units. Market researcher Dataforce forecasts total sales of 1.225 million for the year, a 700,000-unit drop from 2019.

The Italian government has introduced a stimulus program to support car sales that started August 1. The program provides 3,500 euros ($4,125) for buyers who scrap cars that are at least 10 years old and buy a Euro 6-certified vehicle with CO2 emissions of up to 110 grams per kilometer, with a price of up to 40,000 euros. Dealers will contribute 2,000 euros of the incentive money. 

In addition, the government is offering incentives of up to 8,000 euros for buyers of zero-emissions vehicles.

The Italian economic minister, Roberto Gualtieri, has said that a further economic stimulus plan to be approved this month, with measures totaling up to 25 billion euros, will include more money for the auto sector.

Premium brands had positive performances, with BMW posting a 38 percent increase in sales, Volvo up 30 percent, Mini and Porsche up 25 percent, and Audi sales rising by 2.5 percent.

Among Fiat Chrysler Automobiles' brands, Fiat registrations declined 3 percent and Lancia's volume was down 16 percent. Alfa Romeo sales dropped 21 percent, and Jeep was down 18 percent.

Renault Group sales were down, with the namesake brand falling 21 percent and Dacia sales declining 33 percent. Within the PSA Group, Peugeot sales declined by 18 percent, Citroen demand was down 22 percent, Opel fell by 31 percent while the DS premium brand had a 61 percent increase.

Volkswagen brand sales were up 0.2 percent. Among VW Group's other brands, Seat sales rose 5.4 percent, while Skoda posted a 6.3 percent increase.

Ford sales declined by 2.8 percent.

Among Asian brands, Toyota sales dropped 10 percent, while Nissan fell by 31 percent. Hyundai volume was up 0.4  percent, while sibling brand Kia saw a 17 percent decline.

Sales to private customers were down 8.3 percent to 86,730 in July, according to Dataforce. 

Sales to short-term rental companies jumped 53 percent to 9,514 following drops of 66 percent in June and 92 percent in May. More than half of total sales to this channel came from the VW Group, according to Dataforce.

Registrations by long-term rental companies declined 2.8 percent and business sales were down 4.8 percent. Self-registrations by automakers and dealers plunged 65 percent and 44 percent, respectively, Dataforce said.

Sales of electrified vehicles jumped with the introduction of several new mild hybrid models, including the Fiat Panda and 500 and Lancia Ypsilon, and the Ford Puma. Sales of hybrid cars more than doubled in July from the same month in 2019 to 17,447 with a 12.7 percent market share, up from 5.4 percent. 

Full-electric car sales rose 71 percent to 1,608 to a 1.2 percent market share, while plug-in hybrid sales jumped 438 percent to 2,094 for a 1.5 percent share.

Gasoline car sales fell by 23 percent in the month for a 38.6 percent market share, while diesel sales fell 12 percent to a market share of 36.9 percent.