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Aedive Predicts Industrial Collapse Without Electric Car Subsidies

Aedive Predicts Industrial Collapse Without Electric Car Subsidies

A. Noguerol

Lunes, 27 de enero 2025, 15:21

Parliament's rejection of the Omnibus Law has temporarily blocked the extension of the Moves III Plan for the purchase of electric vehicles, fuel cells, and charging points. The non-approval has also nullified the 15% IRPF deduction for the purchase of an electric vehicle until December 31, 2025, a measure implemented last June, as well as subsidies of up to 80% for the installation of charging points for individuals.

This has come as a shock to the main manufacturers and sellers of vehicles in Spain, as well as to the members of the Business Association for the Development and Promotion of Electric Mobility (AEDIVE).

From this organisation, which brings together all companies involved in the electric mobility industry in Spain, they call on politicians for rationality, foresight, and swift agreements to reactivate an efficient incentive plan, similar to MOVES 3, to maintain commitments made by companies with their customers and to continue the commitment conveyed by the Government last December.

Following the Government's announcement last December of the extension of MOVES 3 subsidies until June 2025, registrations in January saw a significant increase of 60% in battery electric vehicles; 36% in plug-in hybrids and 100% in the private channel, until the Omnibus Law was rejected on the 22nd, causing an almost total market halt.

This situation represents a true catastrophe in economic, industrial, business, technological, energy, and environmental terms, according to AEDIVE, and jeopardises the future of the automotive industry in Spain, at a very delicate geopolitical moment, where it is essential to promote certainty and predictability in investments and the market from a political standpoint.

This legislative blockade makes it impossible, according to their forecasts, to meet the objectives of the National Integrated Energy and Climate Plan (PNIEC), which sets 5.5 million electric vehicles by 2030, and puts at risk a private investment close to 60 billion euros, necessary to reach these goals, considering the impact on the entire electric mobility value chain and job creation in 22 different sectors, according to the recent "Socioeconomic Impact Study of Electric Mobility in Spain" by AEDIVE.

The electric car stalls in the Spanish market F. P.

Fiscal Support Measures

Aside from reactivating an efficient incentive plan, AEDIVE proposes a series of actions to boost the market:

1. In IRPF: 21% deduction of the acquisition value of electric vehicles, with a maximum deduction base of 45,000 euros.

2. In IRPF: 35% deduction of the installation value of the electric vehicle charging point, with a maximum deduction base of 3,000 euros.

3. In Corporate Tax: 35% deduction in the installation of public access charging infrastructures, up to an amount of 100,000 euros per charging point; and up to 200,000 euros if they incorporate backup energy storage solutions.

4. Freedom of amortisation in the calculation of Corporate Tax for all investments in zero-emission mobility, including electric vehicles and/or charging infrastructures.

5. Elimination of taxes on in-kind remuneration for the use of zero-emission vehicles owned by the company or leased, removing any limitation on the purchase price ceiling.

6. Scrappage bonus of 2,000 euros for use in electric shared mobility services (bicycles, motorcycles, and cars).

7. Continue improving the energy savings certificate system (CAEs) in the field of electric mobility and expedite its processing.

A strategic project

The electric vehicle represents a strategic project for Spain that not only offers a unique opportunity to improve sustainability and public health but is also a driver of economic growth, technological innovation, energy efficiency, and geopolitical independence, reducing the import of fossil fuels from third countries and generating its own clean and native energy to power buildings, industry, and mobility.

Spain is a country of enormous appeal for investment linked to the electric vehicle value chain due to its logistical advantages (46 seaports) and being a reference in the manufacture of all kinds of electric vehicles and automotive components, but also of charging points and electrical equipment, gigafactories, battery recycling plants; energy storage with second-life batteries, and reserves of lithium, cobalt, copper, nickel, aluminium, and other strategic raw materials, ensuring a circular economy that is complemented by advances in new technologies, such as 5G, digitalisation, or artificial intelligence.

On the other hand, Spain exports 90% of its automobile production to third countries that plan to end the marketing of combustion models between 2035 and 2040, making it essential to strengthen its industrial and technological chain to compete on equal terms with other markets.

At the same time, the automotive industry needs to increase the sale of electric vehicles to avoid multimillion-euro fines resulting from the requirement that the average emissions of their cars do not exceed 93.6 grams of CO₂ per kilometre.

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