Italy has set aside an extra €100m (roughly R1.7bn) to subsidise citizens who want to buy less polluting vehicles this year, industry minister Giancarlo Giorgetti said.
The scheme is part of a broader economic stimulus decree approved by the cabinet on Friday.
Funds will mainly be allocated to purchases of electric and hybrid cars, but will be also available for low emission Euro 6 small and medium cars, commercial vehicles and second-hand cars, Giorgetti said.
A preliminary draft seen by Reuters before the cabinet decision envisaged a €300m (roughly R4.4bn) allocation, but the government decided on a lower figure.
The measure adds to the €800m (R11.8bn) Rome has already set aside this year to help purchases of low emission vehicles.
Car registrations in Italy declined almost 33% in September, transport ministry data showed this month.
The drop is the third monthly contraction in a row, as a post-pandemic recovery has been hampered by a global microchip supply shortage, which is pushing automakers to reduce production.
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