Italy weighs auto incentive scheme to cut Chinese EV price advantage - sources

FILE PHOTO: Security guards stand at the BYD booth at the Auto Shanghai show, in Shanghai, China April 19, 2023. REUTERS/Aly Song/File Photo

ROME (Reuters) -Italy is considering new incentives for car purchases that would factor in carbon emissions in the manufacturing and distribution process, two sources close to the matter told Reuters on Monday, a way of protecting its industry against Chinese imports.

The scheme, inspired by one adopted in France last month, would potentially discourage purchases of Chinese-built electric cars (EVs), imports of which are increasing in Europe helped by lower prices than those produced by local automakers.