Ganvam Proposes a €400 Million Plan to Renew the Spanish Vehicle Fleet

The main challenge for automotive industry associations over the past decade has not been transitioning to zero-emission mobility but reducing the average age of the vehicle fleet, which continues to rise.

In 2008, when the financial crisis hit, Spain had reached its peak in sales, and the average age of cars was eight years. Today, according to Anfac figures, it exceeds 14 years. Therefore, Ganvam, one of the three major automotive associations – representing distributors' interests – has proposed a plan that will reduce around 300,000 tons of CO2 per year.

They argue that the focus on decarbonization is too much on purchasing electric vehicles and not enough on removing old cars from the market, which pollute much more than other thermal options that meet Euro 6 standards.

One aspect of this problem is economic: electric vehicles are expensive to buy, and many families simply cannot afford to replace a car that, although old, is still functional.

"The fact that in Spain 25% of the fleet is over 20 years old highlights that there is no disposable income to change cars," said Raúl Palacios, president of the association. "With pure scrappage incentives, users can choose the mobility solution that best suits their preferences."

Ganvam's proposal consists of giving €2,000 per scrapped car. If they also opt to buy a low-emission car – emitting less than 120 grams of CO2 per kilometer – they can receive an additional €4,000 from the government. Additionally, they request that manufacturers and dealers advance another €1,000.

Thus, an incentive of up to €7,000 could be achieved for purchasing a car, in line with the current Moves Plan. Ganvam emphasized that these aids need better coordination than Moves and should be received immediately.

Furthermore, the organization notes that it is also important to limit the price of cars that can be purchased to avoid abuses by wealthier individuals: €25,000 for C or Eco labels and up to €45,000 for electric cars. They also consider used cars up to five years old.

The budget for the hypothetical plan would amount to €400 million per year and could be renewed for another two years. With €1.2 billion, it would have a similar scale to Moves but a much more significant impact on air quality, they state.

Otherwise, Ganvam also considers another plan focusing solely on destroying polluting vehicles. For scrapping a car over 10 years old, the owner would receive €2,000. It would be necessary to prove ownership for the last nine months – to avoid distortions in the second-hand market. In this case, the government would only need €100 million.

According to Ganvam, it is about "reviving the spirit of the Prever Plan by providing direct purchase aids for drivers who want to change their car." The last fleet renewal plan, the Renove Plan of 2020, set amounts between €350 and €4,000 for scrapping cars over ten years old but only reached €800 if buying a C label car, so it did not have much impact.

The association notes that "although these programs represent an investment, previous plans demonstrate that at least three times the investment can be recouped, so the fiscal balance is always positive."