Automotive and Smart Mobility: €300 Million to Accelerate the Technological Transition

Italy’s Ministry of Enterprises and Made in Italy (MIMIT) is making €300 million available to support investments by companies developing new technologies and solutions for the mobility of the future.

The funding will be provided through the mini development contracts scheme, as part of the refinancing of the Automotive Fund approved by the decree of June 10. The initiative aims to support the sector’s industrial transformation, with a particular focus on technologies for low-emission, connected, autonomous, intelligent and safe mobility, in line with European targets for transport decarbonization.

Electrified Vehicles, Connectivity and Intelligent Technologies

The measure, signed by Minister Adolfo Urso, will support projects involving 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. The initiative will further support industrial diversification and conversion towards strategic technologies with a strong research and development component.

Production investments may be combined with industrial research and experimental development activities, as well as employee training programmes. Training expenses 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, highlighting the need to support the automotive sector during this phase of industrial transformation while protecting a strategic pillar of Made in Italy.

60% of Funding 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 earmarked for micro and small businesses.

The measure also includes a strong focus on regional development. 40% of the funding will be allocated to projects carried out at production facilities located in Southern Italy, specifically in Abruzzo, Molise, Campania, Basilicata, Calabria, Puglia, Sicily and Sardinia.

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

Incentives Covering Up to 75% of Eligible Costs

The support will be provided in the form of non-repayable grants and subsidised 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 of submission, through a two-stage evaluation process.

The decision granting the incentives is expected to be issued within 120 days of the application being submitted.

The operational procedures for accessing the funding have yet to be defined. A subsequent ministerial implementing decree will establish the procedures, criteria and conditions for submitting applications.

From the Automotive Supply Chain to the Mobility of the Future

The €300 million package is part of a broader strategy to support the transformation of Italy’s automotive supply chain, with implications extending well beyond vehicle manufacturing.

The shift towards electrified, connected and intelligent vehicles, new propulsion systems, advanced components and data-driven technologies is also creating new opportunities for urban mobility and smart city development.

For component manufacturers, platform and onboard-system developers, propulsion technology companies and businesses working on connected mobility, the incentives could provide an opportunity to accelerate investments in innovation and contribute to a transport ecosystem that is more efficient, safer, more digital and lower-emission.

Innovative mobility solutions will be presented at Traffic 2026, the international exhibition and conference dedicated to traffic management, infrastructure, safety and enforcement, smart roads and smart cities, intelligent mobility, parking solutions, and public and collective transport.

It will take place as part of Urban Tech 2026 – The Urban Technology Show, the new event dedicated to e-mobility, traffic, commuting, security, telecoms & data and environment, scheduled to take place from 7 to 9 October 2026 at BolognaFiere.