In a bid to further promote electric vehicle (EV) adoption, the Spanish government has announced an extension of its EV subsidy program, Moves III. The program, which was launched in 2021 with an initial budget of €1.2 million, has now been bolstered with an additional €400 million at the end of 2022. This injection of funds aims to encourage the transition to cleaner mobility options and accelerate the decarbonization of the transportation sector.
Initially, the subsidy program was limited to new electric and hybrid vehicles, offering financial assistance of up to €7,000 for electric cars, up to €9,000 for electric vans, and up to €5,000 for plug-in or electric hybrid models. However, the recent announcement brings a significant change by allowing EV owners to apply for subsidies even if their vehicles are pre-owned. There is a catch, though—the cars must not be older than 12 months.
While this expansion of the subsidy program is a step in the right direction, it has drawn criticism from the National Association of Vehicle Sellers and Repairers (GANVAM). They argue that the age limit of 12 months is “insufficient” and call for an extension to include 36-month-old models. GANVAM emphasizes that making electric cars an affordable option for the majority of citizens necessitates broader support, as newer models often come with a higher price tag. They highlight that a state-of-the-art electric car, with the maximum incentive applied, costs around €40,000, whereas a three-year-old model can be obtained for 50 percent less.
In another effort to bolster the transition to electric mobility, the government has increased the maximum number of subsidised vehicles that can be acquired by each applicant. Previously capped at 50 units, the new limit allows applicants to secure grants for up to 250 electric vehicles. This move aims to incentivize the renewal of public and commercial fleets, further reducing carbon emissions from transportation. Additionally, dealers will now have the opportunity to sell more demonstration cars, as the limit has been raised from 30 to 90 vehicles. These demonstration vehicles can be up to one year old, marking a three-month extension to the previous age restriction.
The Spanish government’s decision to extend the Moves III subsidy program to pre-owned EVs and expand the number of subsidized vehicles represents a significant push towards a greener and more sustainable transportation landscape. As the country strives to meet its climate goals and create a cleaner future, these initiatives are expected to play a crucial role in accelerating the adoption of electric vehicles across Spain.
