Italy’s Ministry of Enterprises and Made in Italy (MIMIT) is allocating €300 million to the country’s automotive supply chain, with the aim of supporting the investments needed to transform the sector and accelerate the transition towards more sustainable mobility.

The funds will be made available through the mini development contracts scheme, as part of the refinancing of the Automotive Fund approved by the decree of June 10. The new initiative focuses in particular on the development of advanced technologies for low-emission, autonomous, connected, intelligent and safe mobility, in line with European targets for transport decarbonization.

Focus on Electrified Vehicles and Low-Emission Technologies

The measure, signed by Minister Adolfo Urso, will support projects aimed at the development, engineering, testing and production of new vehicles and mobility solutions, as well as low-emission power supply and propulsion systems.

Eligible projects will also include the development of advanced components, systems and technologies for sustainable and connected mobility, together with industrial diversification and conversion projects focused on strategic technologies with high research and development intensity.

Production investments may be accompanied by industrial research and experimental development activities, as well as employee training programs. Training expenses, however, will be capped at 10% of the overall investment.

“With this measure, we are providing companies across the supply chain with a targeted tool to continue investing in technology and the transition,” said Minister Adolfo Urso, stressing the need to support the automotive sector during this phase of industrial transformation while protecting a strategic pillar of Made in Italy.

60% of Funds Reserved for SMEs

A significant share of the funding will be directed towards small and medium-sized enterprises. 60% of the €300 million will be reserved for projects submitted by SMEs, with one quarter of this allocation specifically earmarked for micro and small businesses.

A further 40% of the funding will be allocated to projects carried out at production facilities in Southern Italy, specifically in Abruzzo, Molise, Campania, Basilicata, Calabria, Puglia, Sicily and Sardinia.

Two additional quotas, each representing 10%, will be reserved for companies holding a legality rating and those with gender equality certification.

Incentives Covering Up to 75% of Eligible Costs

The incentives will be provided in the form of non-repayable grants and subsidized financing, covering up to 75% of eligible costs.

Companies will also be able to submit projects jointly, through partnerships involving up to five participating businesses.

Applications will be assessed according to the chronological order in which they are submitted, through a two-stage evaluation process. The decision to grant the incentives will be issued within 120 days of receiving the application.

The operational details for submitting applications have yet to be finalized. A subsequent ministerial implementing decree will define the procedures and criteria for accessing the incentives.

Support for the Transformation of the Automotive Supply Chain

The €300 million package represents another step in Italy’s strategy to support the automotive industry through its technological transformation. For component manufacturers and companies working on new vehicle platforms, propulsion systems and connected-mobility technologies, the measure could provide important support for the investments required to accelerate the shift towards increasingly efficient and low-emission vehicles.

Innovative technologies for the production and recycling of electric and hybrid vehicles, targeting the automotive, transport and industrial sectors, will be showcased at E-Tech Europe, taking place from 7 to 9 October 2026 at Bologna Exhibition Center as part of Urban Tech 2026 – The Urban Technology Show, the new event dedicated to e-mobility, traffic, commuting, security, telecommunications & data, and the environment.