Criticism Greets Spain’s Latest MOVEA Scheme

MADRID – The Spanish government launches a new edition of the MOVEA program to spur sales of vehicles with powertrains using alternative fuels costing no more than €32,000 ($35,840).

The plan is backed by €14.2 million ($15.9 million) in funding, compared with €16.6 million ($18.5 million) for the preceding program, and eligibility ends Oct. 15 or as soon as the funding is exhausted.

Incentive amounts range from €500 ($560) for cars to €18,000 ($20,160) for trucks and buses. Dealers must chip in another €1,000 ($1,120) to subsidize a MOVEA sale.

Funding for battery-electric vehicles, plug-in hybrid-electric vehicles and extended-range electric vehicles will range from €1,100 ($1,232) to €15,000 ($16,798); liquefied-propane-gas vehicles from €500-€15,000; and compressed-natural-gas vehicles from €1,000-€18,000.

The latest MOVEA plan also subsidizes the installation of public charging stations, with aid of up to 40% the cost.

However, the Spanish auto industry has been lukewarm to the program.

GANVAM’s Herrera critical of MOVEA’s latest installment.

Tomas Herrera, general manager of GANVAM, the main Spanish association of auto dealers, vendors and repair shops, has been particularly critical of the latest MOVEA.

“The government’s commitment to efficient mobility and alternative energies is more a statement of intent than a reality, judging from the weakness of an impulse plan based on intermittent aid and a budgetary allocation light-years from Europe,” said Herrera.

Other industry players have alleged the program lacks stability and continuity, which they think adds uncertainty and in the end slows the rollout of low-emissions vehicles.

“In addition, compared to other European countries in our environment, the budget for alternative mobility can be described as testimonial, being at least 10 times lower, which explains why, for example, electricity technology in Spain barely represents 0.4% of the market, while in Germany or France is around 1%,” Herrera adds.

Meanwhile, the Spanish government continues work on a new edition of the PIVE incentive for modernizing the nation’s fleet with more efficient vehicles.

The next edition of PIVE, which could launch alongside the new MOVEA installment or perhaps when it ends, will receive €50 million ($55.9 million) in funding. PIVE requires the scrappage of an older vehicle.