At a time when prices of new cars keep climbing out of reach for many households, Italy has launched a surprisingly generous scrappage scheme that makes some EVs almost absurdly affordable. Under the program, low-income buyers who trade in a car registered before 2015 could drive home in a brand-new Dacia Spring for as little as €3,900 (about $4,600 at current exchange rates).

The €597 million ($700 million) initiative is designed to increase electric car sales to at least 39,000 units by June 2026. Right now, fully electric vehicles represent only 5.2% of Italy’s market, far behind the European Union average of 15.8%.

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To qualify for the full €11,000 ($12,900) discount, prospective EV buyers must scrap a Euro 5 (or earlier) vehicle, live in an urban area with more than 50,000 residents, and have a family income below €30,000 ($35,200). Households earning up to €40,000 ($46,900) can still access a reduced €9,000 ($10,600) bonus. Small companies also benefit, with subsidies covering 30% of an EV’s cost capped at €20,000 ($23,500) per new vehicle.

Pocket-Sized Prices

Dacia has trimmed the Italian starting price of the Spring EV from €17,900 ($21,000) to €14,900 ($17,500). With the full scrappage bonus applied, the figure falls to the headline-grabbing €3,900 ($4,600). That entry point is for the Essential Electric 45 trim, equipped with a 44 hp (33 kW / 45 PS) motor and a 26.8 kWh battery, good for a range of 225 km (140 miles).

Stellantis has also dropped the cost of the Leapmotor T03 from €18,900 ($22,200) to €15,900 ($18,700), meaning it can be purchased for €4,900 ($5,800) under the same scheme. As reported by Autonews, the Chinese brand claims that the heavily discounted price is “less than what you paid for your bicycle.”

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Electric vehicles from other automakers are also eligible under the same scheme. Fiat offers the 500e from €9,950 ($11,700) and the electric version of the Grande Panda from €11,950 ($14,000). The closely-related Citroen e-C3 starts at €12,900 ($15,100), while the spacious e-C3 Aircross SUV is now offered from a discounted €15,790 ($18,500).

These prices are undeniably attractive, but the strict eligibility requirements mean the incentives only reach a narrow slice of the population. For now, the question is whether the subsidy will genuinely reshape Italy’s car market or simply deliver a short-term boost among those who qualify.

Citroen

Finding fresh roles for used car batteries is becoming a growing focus in the auto industry, and Stellantis has found a particularly human-centered application. Instead of letting end-of-life EV packs sit idle, the company is repurposing them for mobility solutions outside traditional cars.

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One of the most intriguing examples comes through a collaboration with startup Avathor, which has developed a compact EV tailored for wheelchair users and people with reduced mobility. Adding another interesting twist in this story is that the vehicle itself was penned by Italdesign, part of the Volkswagen Group.

This indirect and somewhat unusual collaboration between Stellantis and the VW Group likely stems from the fact that both Avathor and Italdesign are based in Turin. The Italian city is also a key hub for Stellantis, home to the Mirafiori facilities and the company’s main European headquarters.

From Road To Renewal

The process begins with Stellantis brands gathering batteries from retired EVs. These packs make their way to Turin, where SUSTAINera, Stellantis’ circular economy branch, focuses on extending their usefulness and cutting down on waste. A local partner, Intent S.r.l., then disassembles the 15 kWh modules, repackaging them for fresh duties.

For the Avathor One, the modules are reconfigured in 1.4 kWh short-range or 2.8 kWh long-range batteries, offering up to 50 km (31 mph) between charges with a top speed limited to 10 km/h (6 mph).

Avathor / Italdesign

What Is The Avathor One?

The Avathor One was launched earlier this year as the production model derived from the futuristic 2019 WheeM-i concept by Italdesign. It has a rear ramp for wheelchair access, a pull-out bench, and joystick controls.

Measuring just 1,486 mm (58.5 inches) in length, the EV comes fitted with car-like features such as LED headlights, a rearview camera, and collision-avoidance sensors that recognize both obstacles and pedestrians. It can handle gradients of up to 20 percent and climb steps up to 8 cm (3 inches) high.

According to the company, the goal is to launch the Avathor in Italy later this year, followed by Spain in 2026 and other markets in 2027.

Beyond Mobility Aids

Beyond the Avathor project, Stellantis SUSTAINera is also working with utility providers and battery integrators. One notable example is the ENEL X Pioneer system, which stores renewable energy at Rome’s Fiumicino Airport and is projected to cut CO2 emissions by 16,000 tons over ten years.

Of course, Stellantis isn’t the only automaker that is active in the circular economy with second-life batteries. Other brands such as Nissan, Renault, BMW, Kia, Geely, Jaguar, Toyota, Honda, Skoda, and Audi have all been involved in similar projects.

Stellantis