Italians are crazy for company cars

Italians are crazy for company cars
Hand polishes a black car.

According to UNRAE Book 2021, over the past 30 years the Italian passenger car market has averaged about 2 million registrations. But when the pandemic broke down, registration fell below 1,4 million market.

Among the trends recorded, the penetration of diesel cars among preferences decreases. Consumers are moving towards other fuel sources and zero-emission mobility, which consequently impacts traditional motorizations: in Italy in 2021, the petrol engine, while managing to maintain its leadership, loses almost 8 share points, dropping to 29.9%.

Electric cars rise in share to 4.6% supported by Ecobonus, growing product offer and increased availability of charging points. However, in 2021 the penetration of electric cars in Italy still remains low: the share of electric cars (BEV) and plug-in hybrids (PHEV) in Italy is 4.6% and 4.7% respectively, compared to 10.8% and 9.2% of the average of the other four major markets.

The company car is one of the most beloved benefits of Italians. This was confirmed by the survey carried out by DKV Mobility. According to UNRAE Book 2021, there was a double-digit increase in car registrations by companies, after the downsizing in 2020 due to the pandemic situation. According to DKV Mobility's research, 63% of those who drive a company car treat it as if it were their own (or even better), and this figure is compounded by nearly 14% who say they are "extremely careful" with their company car.

The research also shows that Italians also try to protect their cars from possible damage by third parties when they leave them parked: almost 80% say they look for "convenient" parking spaces or in any case far from other cars and only about 20% try to park even in the narrowest and "riskiest" spaces.

The company car is certainly an important tool for work and representation, which is why 64% take it to the car wash weekly or, at most, every 15 days. Moreover, despite the many hours of driving per day, those who benefit from a company car tend to take great care of the interior, leaving it perfectly tidy (74%).

Zwei Männer an einem Verladehof.

But what are Italians looking for in a company car? Despite the fact that company cars tend to be new cars, with many features already standard, almost 50% have no doubts that they require more comfort! This is followed by 31% who prefer it to be fast and powerful, low consumption is a priority for only 14% (while ease of driving stops at 6%). If we talk about must-have optional extras, the integrated satellite navigator still wins (46%), followed by parking sensors (29%); the City Brake anti-collision system is also gaining ground (15%), while heated seats and steering wheel are appreciated by only 10%.

Despite penalizing taxation and a smaller market share compared to other European Major Markets, the car is still one of the most desired asset for Italians among business benefits and it is perceived as a status-symbol by the employees.