Over One Million Cars Withdrawn: Low Emission Zones and DANA Drive Scrappage Surge

The Spanish automotive sector experienced an unprecedented year in 2024 regarding vehicle withdrawals. Over 1.16 million cars were deregistered, marking a 27.4% increase from the previous year and setting a historic record for vehicles ending up in scrapyards.

This surge in vehicle withdrawals is not limited to passenger cars. The total number of vehicles reaching the end of their life, including commercial vehicles and motorcycles, also hit a historic high, reaching a staggering 1.35 million units. This is revealed by data from the General Directorate of Traffic's Yearbook, compiled by Bipi, a Renault Group company.

Several interconnected reasons are behind this massive phenomenon. The implementation of Low Emission Zones (LEZ) in key cities like Madrid has barred access to the most polluting vehicles, forcing owners to seek alternatives.

Adding to this is the impact of extreme weather events, such as the DANA in Valencia, which rendered tens of thousands of vehicles unusable. Moreover, the growing availability of incentives for purchasing sustainable models has encouraged many owners of aging cars to transition to electrification or more efficient alternatives.

The massive withdrawal of vehicles has had a direct impact on Spain's aging automotive fleet. The DGT indicates that 76.5% of scrapped cars were 20 years or older, highlighting the need for renewal in a fleet with an average age exceeding 14.5 years.

Geographically, Madrid led the vehicle withdrawals, accounting for 52.4% of the total, followed by Andalusia (9.1%) and Catalonia (8.1%). In terms of fuel type, 67.3% of scrapped vehicles were petrol, while 32.2% were diesel.

In this changing context, vehicle subscription emerges as an increasingly popular solution among Spaniards deciding to retire their cars. Alejandro Vigaray, co-CEO of Bipi, notes the rise of this format: "More and more drivers are interested in this format to try electrified models, which can circulate without restrictions." Additionally, subscription allows for changing cars periodically, contributing to rejuvenating the vehicle fleet and encouraging the adoption of more sustainable models.

The record vehicle withdrawal means thousands of Spaniards face decisions about their new mobility. In this scenario, car subscription consolidates as a realistic and flexible option, tailored to each driver's needs and aligned with the growing demand for ECO models. "In the past year, we have noticed a significant increase in demand for ECO models, and for many drivers, we are their first contact with sustainable cars," conclude Bipi representatives.