ROME — Chinese automaker BYD is rolling out what it calls a “BYD Decree” in Italy, offering discounts of up to €11,600 to customers trading in high-mileage cars as the group pushes deeper into a market Rome is trying to steer through an industrial transition.
The privately funded scheme comes as Chinese carmakers expand their European footprint and Italy’s government deploys €300 million to strengthen and reshape the domestic automotive supply chain.
Why it matters: BYD’s move shows how Chinese manufacturers can use aggressive commercial policies (and narratives) to add another layer of pressure to European governments already grappling with China’s growing presence in the car market.
- BYD is effectively borrowing the language of Italian public policy for a private sales campaign — while explicitly stating that the initiative is unrelated to any government measure.
- Its discounts operate independently from Italy’s incentive system and cannot be combined with state or regional subsidies.
- The push comes as Rome is directing public money toward the domestic automotive supply chain, highlighting the two-sided challenge facing Italy: supporting its industrial base while Chinese brands gain ground in its consumer market.
Zoom in: The “BYD Decree”. The campaign runs from Sept. 1 to Sept. 30 and is available to individuals and sole proprietorships based in Italy purchasing eligible BYD vehicles.
- There is a catch: buyers must trade in a car with at least 150,000 kilometers on the clock. The rules require a trade-in, rather than scrapping the old vehicle.
- Discounts range from €1,480 to €11,600, depending on model and trim, according to BYD’s own table. The scheme covers both battery-electric vehicles and the company’s DM-i plug-in hybrids.
- BYD makes the distinction from public policy explicit. Its regulation describes the “Decreto BYD” as a “private commercial initiative” that is “not linked to incentives or public measures.”
The wording is notable. BYD is not simply cutting prices: it has packaged a commercial campaign using the vocabulary of government intervention, setting its own eligibility rules at a time when Italy is wrestling with how to manage the automotive transition.
Meanwhile, in Rome. Italy is trying to reinforce the other side of the equation.
- The Ministry of Enterprises and Made in Italy has allocated €300 million to automotive supply-chain projects through its “mini development contracts,” targeting investment programs tied to sustainable and connected mobility, components, advanced technologies, industrial conversion, research and development, and workforce training.
- The measure is designed to support the transformation of Italy’s automotive industrial base, with 60% of resources reserved for projects involving SMEs and business networks.
The big picture: The two initiatives are not directly comparable: Rome’s €300 million program is industrial policy aimed at investment and the supply chain; BYD’s “decree” is a private campaign aimed at selling cars.
- Their coincidence nevertheless captures the pressure building around Italy’s automotive transition.
- Rome is spending public money to help its domestic supply chain adapt to technological change. At the same time, Chinese manufacturers are expanding their share of the Italian market and have the commercial firepower to devise their own incentive schemes to accelerate sales.
Between the lines: The China factor in EU. The Italian initiative comes against a broader European backdrop: Chinese automakers are making deeper inroads into Europe even as Brussels has sought to counter the competitive pressure from China’s state-backed electric vehicle industry.
- The EU has imposed additional tariffs on Chinese-made battery-electric vehicles following its anti-subsidy investigation, while the continued expansion of Chinese brands has kept the automotive sector at the center of Europe’s increasingly difficult economic relationship with Beijing.
For BYD, Italy is part of an expansion. According to Milano Finanza, citing Unrae data, the company registered 2,580 cars in Italy in August, up 194.9% year-on-year, reaching a 3.7% market share.
- Chinese groups including BYD, Leapmotor, MG Motor, SAIC Motor and Chery continue to gain ground in Italy.
- BYD’s international expansion is becoming increasingly important to the company itself. More than half of BYD’s first-half revenue came from outside China, while the group recorded its first quarterly profit decline in more than three years in the second quarter.
The bottom line: BYD’s “decree” is only a one-month sales campaign. But its timing and framing point to a larger challenge for Rome.
- Government policy is trying to shape the future of Italy’s car industry while Chinese competitors are increasingly capable of shaping the market from the other end.
