The Italian government is contemplating a substantial 930-million-euro ($1 billion) initiative designed to incentivize the transition from traditional gasoline or diesel vehicles to electric cars, according to multiple media sources.

The proposed package involves financial incentives reaching up to 13,750 euros, targeted at individuals earning less than 30,000 euros annually, to facilitate the exchange of their Euro 2 models—over two decades old—for new electric vehicles.

The primary objective, as outlined in the document, is to “transform Italy’s vehicle fleet,” addressing the prevalence of aged Euro 3 cars and lower-grade vehicles, which currently number at least 11 million. The initiative aims to support low-income families and bolster the acquisition of domestically manufactured cars.

Scheduled for presentation at a meeting with representatives from the automotive sector on February 1, this plan reflects a strategic effort by the Italian government to modernize its vehicle landscape, acknowledging its standing as one of the oldest in Europe.

New car registrations in Italy surged by 19 percent in 2023, reaching approximately 1.57 million, as reported by transportation ministry data released on Tuesday.

However, Italy’s electric vehicle (EV) market share remains comparatively lower than that of other major European economies.