Goodbye to Plan Moves III: Congress cancels the extension until June 2025

In an unexpected turn, the Congress of Deputies has rejected the extension of Plan Moves 3, leaving the automotive sector in Spain at a critical crossroads. This decision comes at a time when the country’s electrification and energy transition depend on measures like this one. Although the Government had promised to extend the programme until June 2025, the failure to ratify it poses an obstacle to the sector’s sustainability goals for 2025 and to the transition towards electric mobility.

Plan Moves 3 offered significant incentives to encourage the purchase of electric vehicles, with aid of up to €7,000 if a car over 10 years old was scrapped, and €4,500 without a trade-in. In addition, participating brands had to apply a direct discount of €1,210, and buyers could deduct up to 15% of their income tax, capped at €3,000.

However, the administrative complexity and processing times of these aid schemes were a constant burden. Even so, their impact on the purchase of electric vehicles was undeniable. Now, with their suspension, both consumers and dealerships face considerable uncertainty, especially those who had placed orders in the first days of January 2025.

An unexpected setback for electrification

At the end of 2024, the Spanish Government had announced its intention to extend Plan Moves 3 until 30 June 2025. This additional time sought to allow an orderly transition towards the future Plan Moves 4. However, the proposal failed to secure the necessary support in Congress, where the PP, Vox and Junts together gathered 177 votes against, compared with the 171 from the PSOE and its partners.

The impact of this decision is not minor. Spain, the second-largest car producer in Europe, now faces a challenging 2025. With the industry focused on reducing emissions and meeting strict environmental targets, the removal of incentives such as Plan Moves jeopardises both the sector’s competitiveness and consumer confidence in electric vehicles.

Widespread concern

The manufacturers’ and dealers’ associations, ANFAC and Faconauto, were quick to react. Both organisations have expressed their concern, describing the decision as “the worst possible scenario”. In a joint statement, they urged political parties to reach agreements that would allow new aid to be established.

Spain closed 2024 with an electric vehicle market share of 5.6%, well below the European average of 13.6%. This figure underlines the importance of public aid in stimulating a market that is still developing.

An uncertain future, but with room for manoeuvre

The removal of Plan Moves 3 comes at a critical moment for the sector. Manufacturers depend on an increase in electric vehicle sales to meet emissions regulations and avoid penalties. Furthermore, the drop in demand could have repercussions for domestic production, putting thousands of jobs at risk.

Although both the PP and Junts have expressed their willingness to renegotiate the continuation of the programme outside the framework of the Omnibus Law, the Government will have to decide whether to restructure the proposal or seek new agreements. Time is pressing, as the uncertainty generated affects not only manufacturers and dealers, but also consumers who were counting on these aid schemes for their purchases.