Two Months Without Moves Jeopardise Orders and Employment in the Automotive Industry

2025 is a critical year for the European automotive industry, as brands face fines totalling around 16 billion euros if they do not reduce their emissions from the current 115.1 grams of CO2 per kilometre to 93.6. This means that about one-fifth of their registrations must be zero-emission models.

Spain has never been known for its appetite for such vehicles, despite having relatively high incentive plans to boost demand for these models. In its last edition—the third, which ended on December 31—the Moves Plan had a budget of 1.55 billion and offered up to 7,000 euros discount for purchasing a car if another over 10 years old was taken off the road.

Even so, last year these types of engines accounted for just 5.4% of the total market, with 65,478 registrations, a 4.2% increase compared to 2023. The Spanish reluctance towards electric vehicles has been explained in various ways, whether it be their high price compared to thermal models or the insufficient number of public charging points. Everything adds up, but the truth is that despite its amounts, the Moves plan was criticised for being inefficient in allocating funds, taking more than a year to receive them.

Yet, it is now what manufacturers are clamouring for. At the end of last year, there was a general certainty that these aids would continue. Last week, the third vice-president and Minister of Ecological Transition, Sara Aagesen, told Europa Press that these would arrive "as soon as possible, and we expect responsibility from the parliamentary arc to achieve something that society demands, but also the sector."

This year, the Government had indicated that it intended to develop an incentive model that would allocate its funds more quickly—without first having to go through the autonomous communities—but for the sector, the priority is to have aids and for them to be retroactive, even if they were a copy of Moves III.

According to the association for the promotion of electric cars, Aedive, each month without an approved aid plan results in losses of 500 million in turnover and the loss of 260 jobs. The organisation states that "some companies in the sector are considering implementing temporary layoffs to cope with the growth of the workforce they planned to respond to a situation they foresaw as very favourable for electric vehicles in 2025."

During the first month of the year, zero-emission model registrations saw a 48.4% increase, but the national association of automobile manufacturers, Anfac, claims this was due to pent-up demand from the end of 2024.

In fact, this month the absence of aids is already being felt, according to Manuel Salvador, general director of Astara, which distributes several brands with zero-emission models, "orders are not coming in. Where there hasn't been much impact is in plug-in hybrids, as their aid is 2,500 euros and doesn't make a big difference to the initial price. If aids are applied retroactively, they will benefit from it."

The federation of official dealers, Faconauto, points out that "despite the Government confirming the continuity of the Moves plan with retroactive effect, the electrified vehicle market has lost the momentum with which it started the year. The uncertainty generated by this 'impasse' continues to affect demand, and it is urgent to reactivate it as soon as possible. In 2025, we are not in a position to lose a single electric vehicle sale. The entry into force of EU sanctions adds even more pressure to the sector, which needs certainty and stability."

From Ganvam, which also oversees distribution, its president, Gerardo Cabañas, stated that "unconfirmed announcements create uncertainty that only delays purchase intentions. Today, buyers who trusted in the continuity of Moves incentives are left unsupported. If we don't have effective measures that instil consumer confidence, we will break the pace of a market that had already begun to recover after four years below a million sales. The reactivation of Moves would be positive as a transitional solution, but what is needed is an incentive plan with tax-exempt aids that comply with technological neutrality."

For Kia's general director, Eduardo Dívar, "there is no other way to reduce emissions than to sell electric cars, but there have been customers who have cancelled their orders upon seeing that Moves was not renewed. Manufacturers have to fend for themselves; we cannot depend on politicians, whether European or Spanish."

During the last Anfac Forum, held last week, the Minister of Industry, Jordi Hereu, declared that they have established a new methodology to be more direct with aids and that these will be applied at the dealership.

During the same event, the Secretary of State for Energy, Joan Groizard, opposed relaxing the CO2 targets of the Clean Air For Europe (CAFE) regulation, something that could happen on March 5, following the strategic dialogue being conducted by the European Commission with representatives of the community automotive industry.

Around 90% of Spanish automobile production—which is the second largest in the EU—is destined for export, and almost all goes to the common market. According to data from the European manufacturers' association, ACEA, sales in this environment barely recorded a 0.8% increase in 2024, and electric cars fell by 5.9%. This is largely due to the halt in sales in Germany—the largest automobile market in the EU and the second-largest destination for Spanish production—which eliminated its incentive plan at the end of 2023. For now, it is unknown what Brussels' conclusion will be, but during the Anfac Forum, Hereu indicated that he hoped "the Commission will propose European resources to stimulate demand," pointing towards a community purchase aid plan.

Yesterday, the EU approved the Clean Industrial Pact, which sets sustainable steel levels for European factories, a measure that could translate into greater protectionism, a trend also seen in the US or China.