The Italian economy was one of the hardest hit by the European economic crisis and it is one of the countries that have recovered the slowest. The Bank of Italy has predicted that the economy will grow by just 0.5% in 2015, but currently the motor industry is bucking this trend with the minister of transport announcing new car sales had grown by 13.5% in quarter one compared with the same period in 2014.

However, the Italian market is still in the doldrums with 2015’s full year forecast at around 1.5 million units, which is still 1.25m short of its 2007 market high of 2.75m new cars.

One of the biggest sectors for new car growth is the car rental industry which is being fuelled by high profile events such as the Milan Expo which runs for the next six months and which is destined to attract millions of visitors, and exhibitors from nearly 150 countries. Hire fleets are being bolstered to satisfy this additional demand and to meet the country’s annual seasonal tourism requirements.

The private new car market is also starting to grow. In Q1 sales grew by between 7-8%, which is a positive sign, especially as very few people outside Italy fully appreciated how hard the average motorist was hit by the country’s recession.

In many cases it wasn’t just about a driver putting off the purchase of a new or used car. For many it was about selling their car and not replacing it, instead looking for other forms of transport until such time as they could afford to buy and run a replacement.

This Q1 glimmer of hope shows private buyers are coming back into the used market as 4.0m used cars are forecast to change ownership this year alone. Generally used cars are getting older with many corporates extending their company car replacement cycles to four years, while rental companies are typically extending the life of their cars from two to three years.

Italian cars are generally very well equipped and good value when compared with other European countries so used demand is high. Generally Italian drivers prefer German cars whenever possible such as the Audi A3 and BMW 1 Series, while the Far Eastern brands are also increasing their market share to compete with home brands such as Fiat.

This level of desirability has led to more Italian cars being exported as cross-border used sales activity helps to balance the demand and supply within Europe. Currently 60-65% of used cars being exported through the Autorola online portal are being purchased by German buyers, where generally cars are quite basic but expensive.

Austrian dealers are also buying used cars, not just for selling into the home market but also for export to the Czech Republic, Slovakia and Slovenia. Demand from both Spain and France is also growing as both markets look to import used cars to satisfy the demand for used cars as both countries continue to shake off the effects of the most recent recession.

Cautious optimism is how the Italian market can be best described, with used cars leading the automotive recovery as motorists start to get back on their financial feet.