The electric vehicle aims to make its definitive takeoff in Spain

The EV continues to move forward. A process which, in Spain’s case, has been slower than expected, despite the strong commitment of the institutions and sectors involved.

By the end of 2023, there were 466,178 electric vehicles in the national fleet, significantly below the target of 5.5 million set by the National Integrated Energy and Climate Plan (Pniec) for 2030. These figures contrast with the progress being made elsewhere in the world. According to the International Energy Agency (IEA), electric car sales will continue to rise this year, driven once again by strong demand in China. The IEA expects global electric car sales to reach around 17 million, accounting for nearly 25% of the total.

In its annual report on electric vehicles, the IEA notes that registrations increased by 25% in the first quarter of 2024 compared to the same period in 2023. This trend, if it continues for the rest of the year, will be underpinned by competition among manufacturers, falling battery and car prices, and ongoing policy support. The market share is expected to reach 45% in China, 25% in Europe, and 11% in the United States. The authors of the report make a series of longer-term projections, estimating that even if current policies are maintained, half of the cars registered worldwide in 2035 will be electric.

Meanwhile, 113,784 electric cars were registered in Spain last year, reaching a market share of 12%. The industry estimated that around 190,000 electrified vehicles needed to be sold last year to meet decarbonization targets. 

In fact, as of May 1, 2024, registrations of electrified vehicles - 100% electric and plug-in hybrids of all types, including cars, two-wheelers, and commercial and industrial vehicles - rose 8.9% in April to 10,530 units, according to the Business Association for the Development and Promotion of Electric Mobility (AEDIVE). Since January, they have seen a 1.2% increase, totaling 41,474 units. 

Aiming for the definitive takeoff

Both vehicle manufacturers and dealers agree that the administrative processes required to apply for public subsidies (such as the Moves Plan) and the bureaucratic complexities in developing the charging infrastructure network are some of the main factors causing delays in the electrification of our roads. 

This message is gaining traction across the sector, mobilizing all stakeholders and the central government, which is already working on this premise in the fourth call for the Electric and Connected Vehicle (VEC) Strategic Project. This project will have a budget of 1.25 billion euros and is expected to be launched in the last quarter of this year.

As for electric charging points, Spain already has an extensive charging network that’s still growing, thanks to the efforts of various stakeholders, including manufacturers, institutions, and energy companies. 

According to ANFAC's 2023 Electromobility Barometer, Spain now has a total of 29,301 electric charging points, 11,173 of which were installed in the last year alone. 

What the energy sector does agree on is that administrative processes need to be more streamlined at all levels, as this would allow the network to expand more quickly and encourage light vehicle users to adopt this type of mobility. In this sense, companies like Cepsa have made a strong commitment to establishing a pioneering intercity charging network to cover the main corridors of the Iberian Peninsula. 

The low-cost electric vehicle options are on the way

The third key factor for encouraging users to adopt electrification is more attractive pricing, an area where automakers are already making strides. Slowly but surely, new hybrid and electric models are being announced at lower prices, just as major European and American manufacturers have already done.

As such, more and more light and heavy vehicle manufacturers are entering the market or updating their electrification offerings. This competition is causing those who were initially opposed to manufacturing to reconsider and start working on electric vehicles to add to their product lines.

Many models have been announced for the coming years at reduced costs. For example, at the recent Geneva Motor Show, Renault unveiled its new all-electric R5. This model is based on the iconic car that was hugely successful in the 1970s, ‘80s, and ‘90s, but now it's been redesigned for a new era of energy transition.