Italy’s new EV twist: Chinese minicars to be built near Turin — why this small car story is a big global deal

What happened

On September 9, 2025, Italy got an unexpected jolt of auto-industry adrenaline: ITB Auto said it will invest about €100 million to take over an idled Lear Corp. components plant in Grugliasco, just outside Turin, and start building Chinese-brand “Desner” electric minicars locally. The company targets roughly 20,000 cars a year from the first quarter of 2026, aiming to rehire 200–250 of the site’s 376 workers. Italy’s industry ministry and unions backed the outline but asked for due diligence on finances; a follow-up meeting is slated for October 9.

Why this matters (even if you don’t live in Italy)

Think of these minicars as the espresso shots of mobility: small, quick, and surprisingly powerful for city life. If ITB pulls this off, it signals a broader shift in the EV race — not just selling Chinese-made vehicles in Europe, but building them inside the EU. That can blunt tariffs, smooth logistics, and tune models to European tastes (yes, including the “will it fit in a medieval alley?” test). It also puts pressure on urban policy: more compact EVs could mean new parking rules, cheaper city permits, and different insurance tiers. For consumers, that may translate to lower entry prices for electric driving and less “range anxiety” because these cars are designed for short daily hops rather than cross-continent road trips.

The bigger chessboard: policy, prices, and PR

Automakers aren’t just battling on the showroom floor; they’re navigating a thicket of policy and perception. China this week launched a three‑month crackdown on shady online auto marketing — a response to fierce price wars and troll-fueled pile‑ons that have muddied comparisons and spooked buyers. Cleaner marketing might sound dull, but if it stabilizes pricing and restores trust, it could ripple through global EV demand.

Trade tensions also shape where cars get built. In a reminder that politics drives production lines as much as pistons, China just slapped provisional anti‑dumping tariffs on EU pork — widely read as retaliation for EU tariffs on Chinese EVs. Moving assembly into Europe is one way to de‑risk that tug‑of‑war and keep prices predictable.

Timing is everything: the IAA spotlight

This Italian move lands right as the global industry gathers at IAA Mobility in Munich (September 9–14), where the vibe is “innovate fast or get squeezed.” Bosch’s CEO warned that cut‑throat competition will persist into 2026 as margins stay thin and trade barriers linger — a polite way of saying that cost discipline and nimble footprints will decide winners. A minicar program with local EU assembly is precisely the sort of nimbleness suppliers and policymakers want to see.

How it connects to other recent headlines

• EVs go local, everywhere: Just days ago, Vietnam’s VinFast launched the VF6 and VF7 in India at aggressive price points, pairing product with local manufacturing plans. The throughline: winning in EVs increasingly means building closer to the buyer.
• From marketing clean‑up to factory floor: China’s online marketing crackdown aims to calm a noisy market; meanwhile, European assembly of Chinese brands could calm tariff risk. Together, they point to an industry trying to replace chaos with credibility.
• Trade shows as truth serum: At IAA, executives admit margins are tight and volumes uncertain. Projects like the Grugliasco minicar plant are test cases for whether compact EVs and local assembly can make the math work.

What to watch next

1) The jobs and supply-chain puzzle. If 200–250 roles return, how many are in final assembly vs. battery packs, software, or power electronics? Follow the October 9 check‑in for clarity on capex, partners, and sourcing.

2) City rules catching up to tiny cars. Expect pilots for micro‑EV parking, lane access, and charging perks. If your commute is 10–20 km, a minicar plus cheap home or curb charging could beat a full‑size SUV on total cost of ownership.

3) Insurance and safety nudges. Regulators may push for advanced driver‑assist even in small cars, which could add cost but lower premiums. Watch how Euro NCAP scores shape consumer trust.

4) Pricing discipline. If the price war cools — helped by marketing clean‑up and localized production — buyers may see fewer whiplash discounts but better long‑term support and residuals.

A quick, optimistic take

Not every mobility revolution needs to arrive on 22‑inch wheels. If Italy becomes a hub for compact EVs, Europe gets jobs and shorter supply chains, city dwellers get practical electrics, and the planet gets a smaller footprint — literally and figuratively. Sure, there are hurdles: financing, supplier ramp‑ups, and the ever‑dramatic tariff tango. But if the plan sticks, your next grocery run might be in a zippy, quiet minicar that parks like a scooter and sips electrons like an espresso — quick, satisfying, and without the bitter aftertaste at the pump.