57% of the Italian automotive supply chain does not plan to invest in innovation in the near future
Over 50% of companies in the Italian automotive supply chain do not plan to invest in product innovation over the next three years, an increase of almost nine percentage points compared to 2024. This is according to the 2025 Survey of the Automotive Ecosystem Transformation Observatory (TEA), led by the Center for Automotive & Mobility Innovation at the Venice School of Management – Ca' Foscari University of Venice, in collaboration with the CNR-IRCrES Research Institute on Economic and Sustainable Growth. Process innovation is also slowing, with a significant share of companies postponing structural interventions, favoring cost-containment strategies in a context marked by uncertain European demand, geopolitical tensions, and the complexity of technological transition.
The emerging picture is of a supply chain that tends to defend itself, focusing largely on so-called "invariant" components and services, not directly related to either the internal combustion engine or the electric motor, postponing decisive strategic decisions regarding the transition. Only a minority of companies declare they are orienting product innovation toward fully electric vehicles, while process innovation appears more widespread, driven primarily by the need for efficiency and international competitiveness.
Employment forecasts confirm the automotive sector's structural difficulties. Overall, a negative employment balance of 4.9% is expected over the next three years. Bucking this trend, companies that have chosen to invest exclusively in electric mobility are the only ones to forecast an increase in their workforce, with an estimated growth of 1.8%. These companies are reporting a growing shortage of specialized skills, particularly in the areas of power electronics, software, and energy management. Financially, the sector is heavily dependent on self-financing: nearly 60% of companies rely primarily on internal resources, while accessing bank credit is often considered costly and complex.
A particularly critical finding concerns strategic planning: approximately one in two companies does not draft a formal business plan. Finally, the analysis reveals a clear request to institutions. To support the technological transition and preserve the competitiveness of the Italian automotive supply chain, companies prioritize reducing energy costs for production plants and streamlining investment processes, which they consider more urgent and effective measures than demand incentives alone.
The TEA Observatory report offers a detailed snapshot of the national automotive supply chain and the critical issues the sector will face. The Commission has agreed to bring forward the review of the CO₂ regulation, but this is still not enough. More radical action is needed, first and foremost by recognizing technological neutrality and supporting the development of biofuels.
We can't waste any more time, because many other sectors depend on the auto industry: every car contains the steel industry, chemicals, and artificial intelligence," said Adolfo Urso, who in recent weeks has been building a synergy with Germany to become the driving force behind the necessary radical reforms needed to change some absurd Green Deal rules that risked destroying entire industrial sectors, especially the automotive industry. Italy has already signed an agreement with Germany on regulatory changes, European industrial policy , and competitiveness. Now it is also appealing to France to broaden the scope of reforms.
Last week, at the Ministry of Infrastructure and Transport (MIMIT), the minister chaired the roundtable on the automotive sector, where MIMIT technicians presented the new Prime Ministerial Decree (DPCM) that plans the resources of the Automotive Fund until 2030 , for a total of approximately 1.6 billion euros , offering companies a multi-year perspective by allocating 75% of the resources to supply.
As stated in a joint statement, the largest share is reserved for Innovation Agreements, with €750 million for research and development , followed by Development Contracts for productive investments. On the demand side, a significant portion of the resources will be allocated to the eco-bonus for light commercial vehicles, as well as the bonus for charging stations and long-term social leasing. These measures are complemented by the measures envisaged in the budget law, which provide significant resources for business investments.
The article 57% of the Italian automotive supply chain does not plan to invest in innovation in the near future comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-57-della-filiera-automotive-italiana-non-prevede-a-breve-investimenti-in-innovazione/ on Wed, 04 Feb 2026 14:48:29 +0000.