Car registrations in Italy increased by 14.7% in November 2022 compared to the same month of the previous year, reaching 119,853. This data, released by the Ministry of Infrastructure and Transport, confirms that the Italian car market is starting to recover from the decline suffered in the first part of 2022, which had brought it to the levels of the 1960s.
However, the road to return to pre-crisis levels will not be easy or short. The contraction in car sales in the first eleven months of 2022 compared to the same period in 2019 is still 31.8%. The negative trend, however, seems to have reversed and other Western European countries are also signaling a change of course.
The main reason for the market recovery is the easing of the supply shortage of microchips and other essential components for car production, which had caused a supply crisis in addition to the demand crisis caused by the pandemic and the related economic difficulties. However, the negative effects of these factors will continue to affect car sales.
To further support the recovery of the car market, manufacturers will need to make an effort to contain prices and the government will need to review its incentive policy to encourage the purchase of electric vehicles and the replacement of Europe's oldest fleet. In addition, greater efforts will be needed to fight inflation and promote sustainable economic growth.
