Spain's electric vehicle 15% discount scheme extended again in bid to drive up sales

The country's leading automotive industry and trade associations consider it to be a positive move, but call for a new form of direct aid that is more effective

Patxi Fernández

Madrid

Friday, 27 December 2024, 12:05

The Spanish government has extended the validity of its 'Moves III' plan for the purchase of electric vehicles (EVs) until 30 June 2025. This plan, with a total allocation of 1.55 billion euros, will remain in force until that new date, during which time all the regions may continue to respond to requests for aid received for the purchase of a zero-emission, electric or fuel cell vehicle, as well as for the installation of charging points.

In addition to this temporary extension, the 15% deduction on the purchase of an EV is being considered until 31 December 2025.

The latest extension of this plan to support EV purchases was launched last June with an allocation of 1.5 billion euros, following the resignation of Wayne Griffiths, former president of Anfac (the Spanish association of car and truck manufacturers) and CEO of Seat/Cupra.

Following the announcement made on Monday, the main trade associations for car manufacturers and dealers in Spain have expressed their satisfaction. Anfac stated that "it was vital to have continuity in the aid in such an important year for the industry as 2025, in which European emissions regulations are being tightened and in which the market share of electric vehicles must double, at least in Spain, if we want to achieve the targets set by the PNIEC [Spain's state-wide strategy on energy and climate]."

The organisation takes the view that, with the complex and competitive scenario that the European and Spanish automotive industry is going through, "the only way to ensure ongoing investments and current and future employment is to speed things up together."

To this end, they highlight the priority of arriving at a new, more efficient purchase aid scheme by 2025, which "if possible, includes a stable financing mechanism, consistent with the growing effort to be made until 2035." For Anfac this new scheme should include heavy goods vehicles (HGVs) where there is still little demand for support.

Potential to speed up the adoption of EVs

Faconauto - one of the car dealers' national trade associations - is also pleased with central government's decision to extend the 'Moves III' plan "at least until a system is found to improve the current one, which has clearly been ineffective."

Anfac's spokesperson stressed that Spain has the potential to speed up the adoption of EVs driven by factors such as greater disposable income for part of the population to afford EVs, the charging infrastructure in urban areas and the growing supply of electric vehicles. With direct purchase subsidies Anfac considers it feasible to reach 250,000 registrations of electrified vehicles by the end of 2025, taking up 25% of the market.

According to José Ignacio Moya, president of Faconauto, "it is essential that the fiscal measures that favour electric vehicles are extended to companies if we want to meet ambitious targets, such as the 250,000 registrations of electrified vehicles by 2025, which are also necessary to avoid the fines that the sector will have to face."

Faconauto also believes that this deadline extension "should be used to advance in the design of a new model of direct aid that is more efficient and accessible to the public."

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