Hybrids, fully electric and plug-in hybrids now account for 68% of the new car market in the Costa del Sol province
There was much anticipation surrounding the 2025 Moves III Plan in southern Spain, aimed at promoting the purchase of electric and plug-in hybrid vehicles, along with their corresponding charging infrastructure. The application period opened on 15 July for all Andalucía and, in just over two months, the funds were exhausted in the principal category for aid: the vehicle purchase itself. The fact that the application window opened later in the year and the rush for less polluting cars have contributed to this phenomenon, which has also been influenced by the rollout of the low emission zones in major citis and towns across the region. Also, crucially, electric car sales have skyrocketed by 115% in Malaga so far this year.
The drying-up of the aid was only acknowledged yesterday by the Andalusian energy agency (AEA) itself on its website. Considering the amount of incentives for vehicles, which in some cases reaches 9,000 euros, and those for charging points and stations, which is around 1,000 euros, the imbalance in the previous budget allocation is evident. In fact, back in February, the regional government transferred funds from charging stations to the vehicle category for more aid. Everything seemed to indicate that a similar decision would be made in this call for subsidy applications.
Well, confirmation came this Tuesday. Andalucía will allocate an additional 13.36 million euros in purchasing aid. To date, nearly 10,200 applications have been submitted, of which approximately 1,900 were on the waiting list and can now be processed.
The regional ministry for energy matters, via the AEA, has decided to redistribute the funds from this scheme, which is allocated a total of 66.78 million euros. Thus, Andalucía will allocate a total of 53.42 million euros to aid the purchase of energy-efficient vehicles (line 1), which represents 80% of the total funds allocated. The remaining balance of 13.35 million euros is for the installation of charging infrastructure (line 2).
What happens if I apply for aid and the budget is exhausted? A waiting list is set up and the order of submissions is respected.
Which vehicles are eligible for this aid? In the case of fuel cell or hydrogen vehicles, the aid ranges from 4,500 to 7,000 euros, depending on whether the owner's previous vehicle is scrapped or not. For pure electric and plug-in hybrid cars with a range of between 30 and 90 kilometres, the range is 2,500 to 5,000 euros. For such cases, the sales limit is 45,000 euros (53,000 euros for 8- or 9-seater vehicles).
If we are talking about electric, plug-in hybrid or hydrogen vans with a range of more than 30 kilometres, the price range is between 7,000 and 9,000 euros.
Turning to motorcycles, if they have a power equal to, or greater than, 3kW and a range of over 70 kilometres, the aid is between 1,100 and 1,300 euros. However, the sales price limit is up to 10,000 euros.
The theoretical duration of the Moves III Plan is running now and until the end of the year. Aid can be backdated to eligible purchases made from 1 January 2025 onwards. The call is promoted by the Andalusian energy agency, an entity attached to the regional ministry responsible for energy.
Demands from the automotive sector for faster grants to be made have been common in every round of this scheme. In some cases, delays in payments have been as long as two years. Linking the aid to the time of purchase is one of the proposals made by trade organisations such as the Malaga association for dealerships and employers in the automotive sector (AMA).
There is also another type of advantage, via personal income tax (IRPF), with 15% tax relief. These are compatible and a maximum limit of 3,000 euros of tax relief is set. The maximum deduction base is 20,000 euros.
In Malaga, 2025 is proving to be a good year for eco-friendly vehicles. "Sales of pure electric vehicles have more than doubled in Malaga. Plug-in vehicles have also grown. They still represent a small percentage, but it is already starting to be significant, around 10%", says AMA president Carlos Oliva.
Figures provided by industry experts and trade associations that include Anfac, Faconauto and Ganvam endorse this reality. The total number of registrations in Malaga between January and August was 19,888 vehicles, an increase of around 21%. Of these, 11,497 were sold to private individuals, 5,793 to companies and 2,598 to car rental companies. In the latter case, the sharp drop of 74% year-on-year is pretty striking.
Electric, hybrid and plug-in hybrid vehicles totalled 13,627 units, an increase of 51%. Significant declines were seen in petrol and diesel vehicles, with falls of 10.8% and 47.3% respectively. There were 5,706 registrations for petrol and 555 for diesel.
In terms of eco-friendly vehicles, hybrids continue to account for the largest market share: 6,707 registrations, up 30% year-on-year. In second place are electric vehicles, with 1,976 acquisitions, representing an exponential increase of 105%. They surpass plug-in hybrids, with 1,631 registrations, a 30% increase.