Automotive: €300 million for the supply chain with new Mini Development Contracts

The Ministry of Business and Made in Italy has allocated €300 million to support companies in the automotive supply chain through the Mini Development Contracts instrument. The measure, financed under the Automotive Fund, aims to support the sector in its transition to more sustainable, technologically advanced mobility models, consistent with European decarbonization objectives.

This is a particularly significant initiative for a sector undergoing profound industrial transformation. The resources will support programs aimed at the development, engineering, testing, and production of new vehicles and mobility solutions , as well as the creation of low-emission fuel and propulsion systems.

Eligible areas also include the development of components, systems, and technologies for sustainable, autonomous, connected, intelligent, and safe mobility , as well as industrial diversification and reconversion programs toward strategic technologies characterized by high research and development intensity. Productive investments may be accompanied by industrial research and experimental development activities and personnel training programs, the latter up to a limit of 10% of the total investment.

Particular attention to SMEs and Southern Italy

The distribution of resources introduces some particularly interesting elements for the Italian productive fabric.

Sixty percent of the resources are reserved for initiatives submitted by SMEs , and within this quota, a quarter is allocated exclusively to micro and small businesses. At the same time, 40% of the resources are allocated to programs to be implemented in establishments located in Southern Italy , in the regions of Abruzzo, Molise, Campania, Basilicata, Calabria, Puglia, Sicily, and Sardinia.

Furthermore, specific quotas of 10% are envisaged for companies in possession of a legality rating and gender equality certification .

Incentives of up to 75% of eligible expenses with Mini Development Contracts.

One of the most interesting aspects concerns the intensity of the support provided.

The incentives will be recognized through a combination of non-repayable contributions and subsidized financing , with coverage that can reach up to 75% of eligible expenses .

There is also the option of submitting joint programs between multiple companies, up to a maximum of five participants . This approach could be particularly interesting for a supply chain like the automotive industry, characterized by the presence of highly interconnected manufacturers, component suppliers, technology suppliers, and specialized operators.

One element to consider with particular attention is the access mechanism: applications will be evaluated in chronological order of submission , through a two-phase investigation. The granting of benefits must be decided within 120 days of receiving the application.

Why businesses should start preparing

The operating procedures for submitting requests and granting incentives will be defined through a subsequent directorial decree .

However, the chronological nature of the procedure makes it advisable not to necessarily wait for the opening of the office to begin evaluating potential investment programs.

For companies in the automotive supply chain, it is crucial to carefully assess project eligibility, investment structure, related financing requirements, and the ability to integrate production investments, research and development, and training into a coherent program.

Particular attention may also be given to developing joint projects between multiple operators in the supply chain, especially where industrial and technological complementarity allows for the development of more structured investment programs.

The support of Italiano & Partners

Italiano & Partners supports companies in evaluating and structuring subsidized investment programs , integrating strategic, financial, and legal expertise.

With regard to Mini Development Contracts for the automotive industry, support may include preliminary analysis of the company and project's eligibility, definition and structuring of the investment program, identification of eligible expenses, development of the economic-financial plan, and assistance in preparing the application and subsequent discussions with the relevant entities.

The goal is to include the incentive within an overall financial and industrial strategy , also evaluating its complementarity with other subsidized and ordinary finance instruments available to support investments and business growth.

With €300 million available and potential coverage of up to 75% of eligible expenses , the new Mini Development Contracts represent a significant opportunity for companies planning investments in the transformation of the automotive supply chain and in new mobility technologies.