Company cars: 300 thousand less cars per year by taxing the employee

2 'of reading

What would happen in the Italian automotive scene if the norm that passes should pass tax the employees , who are assigned a company car, for the entire value, and not just for the share of private use, as it is today? The most probable and most widespread effect would be that each employee would return the machine to the company, with many thanks. What numbers are we talking about and what impact would it have on the sector?

Most medium and large companies take long-term rental cars. In Italy at the end of the year it will be just under 800,000, according to the most up-to-date estimates by the Fleet & Mobility Study Center. Data on cars not rented are not as up to date, but we can easily assume that their number exceeds one million.

In practice, this would be about 2 million company car assignees, overall. These individuals have a car replacement cycle of around 42 months (between 3 and 4 years). It means a registration capacity just under 600 thousand units per year, which is in line with market segmentations.

Car market crash of around 16%
If these machines were transferred to the ownership of employees as private citizens, their turnover would increase to 7 years, lowering the related registrations to below 300 thousand units. This is a car market crash of almost 16%. To these numbers must be added the lower equipment of the fleets of short-term charterers, the car rental office, since 11% of their activity is absorbed by long-term rental, for replacement activities.

This scenario would be critical from the economic point of view, for the builders but also and above all for the distribution, which only recently has started to make profits in a widespread manner, after the years of losses in the mid-decade, which caused the closure of 800 dealerships with a loss of about 50,000 jobs, almost 30% of employees. But not only.