Japanese Media: Chinese Cars Gradually Penetrate Italy's "Fiat Paradise"

The Japanese automotive media outlet *Nikkan Automotive News* published a report by journalist Toshifumi Nakamura on June 27, detailing his observations during a visit to Italy.

The article states: Italy’s auto market exhibits a unique character compared to other major European countries. The dominant vehicles on Italian streets are mostly small cars, and even models long extinct in Japan are still in use. It is said that Italy has the lowest electric vehicle (EV) sales among major European markets. However, since the outbreak of the pandemic, Chinese automakers have stood out significantly, aside from local brands like Fiat.

At the beginning of June, I visited Bologna and its surrounding areas in northern Italy. While walking around the city outside the train station, I noticed rows of small hatchbacks parked everywhere.

Particularly striking were locally produced Fiat models such as the “Panda” and “500,” along with Lancia’s “Epsilon.” Most of these vehicles date back to the 2010s, but some are first-generation Pandas manufactured as early as the 1980s. According to data from the Italian Automobile Dealers Association (UNRAE), the Panda led sales for the 2025 model year, with total sales reaching 1,195,208 units between 2016 and 2025. Its performance—both in name and reality—has made it a true representative of domestic production.

Dacia (Romania), under the Renault Group, and Seat (Spain), under the Volkswagen Group, are used for police cars. Classic small hatchbacks such as the French Peugeot “206” and the American Ford Focus, which once excelled in world rally competitions, are still in active service today.

In the Japanese car segment, Suzuki has shown remarkable vitality. From the “Swift,” frequently seen in TV commercials, to the “Ignis” and “Bitara,” which are commonly spotted in urban areas, Japanese cars’ reputation for reliability continues to attract local demand. Toyota also offers a compact model called “Aigo,” while vehicles like the “C-HR” and “Corolla Cross” are highly visible on city streets, often serving as taxis.

According to OECD data, Italy’s average annual wage in 2024 was $51,019 (approximately 82 million JPY), comparable to Japan’s $49,446 (about 80 million JPY), both falling below the OECD average of $61,147 (around 99 million JPY).

While the sight of numerous small hatchbacks lined up may seem odd, it makes sense when considering that consumer demand is primarily focused on economical A- and B-class vehicles.

While parking parallel to the curb, I noticed a small SUV with “DR” written on its front grille. I had never heard of this brand before. After investigation, I discovered it was the DR5, a rebadged version of the Chery Tiggo 4 Pro produced in China (KD assembly). DR was founded in 2006 and currently produces KD vehicles not only for Chery but also for Anhui JAC and Beijing Auto BAIC, operating six different brands. One of them, the “EVO” brand, has received extensive promotion through Italy’s public broadcaster RAI.

According to UNRAE data, DR sold just 457 units in 2016, but surged to 15,706 units post-pandemic in 2023. In 2025, sales reached 10,218 units—second only to the local Alfa Romeo (10,665 units). This growth is believed to be partly due to shortages of new models following the pandemic.

Over the past two years, Chinese brands have seen significant expansion. In 2025, BYD sold 7,868 units (a 4.2-fold increase from the previous year), Zeekr sold 6,624 units (a 55-fold increase), Chery’s Omoda sold 5,879 units (6.9 times higher), and Jacoo sold 4,910 units (10.6 times more). These models offer pricing and styling competitive with European counterparts.

However, DR was fined €6 million (approximately 11 billion JPY) by authorities in 2024 for misleading consumers by marketing Chinese-made vehicles as Italian. In response, DR announced in July 2025 plans to invest in an Italian factory and create 300 jobs.

Despite being mid-June, temperatures remained consistently around 35°C for several days, making outdoor travel extremely hot—forcing me to walk only in shaded areas.

In restaurants, customers used handheld fans while dining, and car exhaust fumes rose into the sidewalks as heat waves.

According to organizations such as JETRO, 49% of Italy’s electricity came from renewable sources like hydropower and solar energy in 2024. Charging EVs using renewables can reduce CO₂ emissions, yet in 2025, EV sales totaled only 94,624 units, accounting for just 6.2% of the market share (data from the European Automobile Manufacturers Association). This number is far lower than Germany’s over 540,000 or France’s over 320,000.

The Italian government began offering subsidies for EV purchases in October 2025. Although EV sales are expected to grow gradually, infrastructure development lags behind, particularly in public charging stations, posing ongoing challenges.

Original article: toutiao.com/article/1869249886584842/

Disclaimer: The views expressed in this article are those of the author alone.