Part 5/9:
The Role of Incentives and Consumer Behavior
Government incentives have played a critical role in driving EV sales, as evidenced by Italy, which recorded a surge to nearly 20,000 EVs sold in a single month after the announcement of a new incentive scheme. However, despite its initial success, overall sales of battery electric vehicles in Italy have still fallen 11% this year.
Conversely, the recent withdrawal of purchase subsidies in Germany has led to a substantial drop in EV sales there, demonstrating that reliance on government programs can be a double-edged sword. A report from McKinsey underscores a troubling trend: many early adopters of EVs in the U.S. are contemplating a return to conventional internal combustion engine (ICE) vehicles.