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Date: January 28, 2025
Inés Platini
By Inés Platini
Spain
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The unexpected twist in the Plan Moves that challenges Spanish automakers: How will they respond?

The recent cancellation of the Plan Moves extension, which has shaken the eMobility sector, could push Europe’s second-largest automotive hub to replicate the situation that occurred in Germany a year ago. How might brands react to this scenario?
The unexpected twist in the Plan Moves that challenges Spanish automakers: How will they respond?
Pedro Sánchez, Spanish president.

A recent resolution in Congress annulled the extension of the Moves III Plan announced at the end of December 2024, causing an earthquake in the eMobility sector.

With 177 votes against and 171 in favor, the “Omnibus Decree” left key incentives up in the air, such as the 15% deduction in personal income tax for the purchase of electric cars.

The measure not only jeopardizes the goals of the National Integrated Energy and Climate Plan (PNIEC), but also creates uncertainty among manufacturers and consumers.

In this regard, sources consulted by Mobility Portal España indicate: “The market was already fragile and this measure disrupts the plans even more.” 

“The entire automobile industry was beginning its sales strategy driven by the ‘CAFE‘ standard and the advance of the Chinese and American markets,” they added.

What measures could brands take in light of this situation? “At the moment they are waiting to see if the situation is resolved in a few days,” they say.

In this context, a prompt reaction is expected to address and resolve the problem, given that the package also included aid for the DANA in Valencia.

Will the German case be replicated in Spain?

The end of the Moves III Plan has sparked comparisons with what happened in Europe’s second largest automotive hub, where, after eliminating the environmental bonus, manufacturers drastically reduced prices to maintain demand. 

Volkswagen, for example, applied discounts of more than 7,000 euros.

This led the industry to question whether prices were kept artificially high while the subsidy was in place to generate higher profits.

This strategy was analyzed in an article published by Mobility Portal España.

“Moves is more geared towards benefiting manufacturers than users,” said an industry representative. 

He explained: “Automatically, some producers raise the price of the electric vehicle by at least 4,500 euros, which is the part financed by the State.” 

From an industrial perspective, Spain is positioned as the second largest automobile manufacturer in Europe.

The impact on factories could therefore be minor in the short term.

This is because around 90% of vehicles produced in the country are exported to markets such as France, Germany, Italy or the United Kingdom, where incentives and regulations may differ.

Another consequence, which is feared could be repeated as occurred in Germany after the elimination of the incentive, is the decline in sales of zero-emission cars.

In this context, the Spanish Association of Automobile and Truck Manufacturers (ANFAC) warns: “Moves has been fundamental in accelerating the adoption of electric cars in Spain.” 

“Its suspension, without an immediate alternative programme, jeopardises the achievement of the EU’s climate objectives,” it said in a recent statement.

Meanwhile, Faconauto, a representative of the dealers, stated that “the lack of direct aid could drastically slow down sales at a critical time for the ecological transition.”

It should be noted that Spain must reach a vehicle fleet of 5.5 million electric vehicles by 2030 to meet the European Union’s climate commitments.

What is the outlook for Moves?

The votes against by the PP, Junts and Vox deputies nullified, among other measures, the extension of the Moves III Plan until June 30 of this year and the 15% deduction of personal income tax up to 3,000 euros for the purchase of electric cars.

In this context, the Popular Party proposes negotiating the measures separately.

Before Wednesday’s vote, the PP had already registered bills related to various aspects. 

These included transport aid, certain fiscal measures to support electric vehicles and facilities for the Valencian Community to take on long-term debt in order to rebuild the municipalities affected by the DANA.

Arturo Perez de Lucia, General Manager of AEDIVE.

“If the PSOE wants, we can approve these measures in less than 15 days,” the group said.

A formal dialogue has not yet been finalized. 

AEDIVE expects a rapid negotiation process, at a political level, “in line with the citizens and the fantastic Spanish business and industrial hashtag network, which will allow the momentum to accelerate.”

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