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Spain unveils scrappage scheme

Scrappage scheme with green goals to be included in €3.75 billion aid package unveiled by the Spanish government


scrappage scheme unveiled in Spain feat four

The Spanish government has announced a €3.75 billion aid package for the auto industry, which includes a scrappage scheme with green goals, more focus on electric charging points and funding for hydrogen power.

€230m has been designated for a scrappage scheme for  Spanish motorists trading in their old vehicles for new zero- or low-emission replacement vehicles. 

Cars more than 20 years old will be granted an extra premium, as will low-income households and according to the government’s plan, vehicles powered by electric battery or hydrogen could qualify for a €4,000 subsidy, while cars that come in under 120g of CO2 per kilometre will be eligible for up to €1,000.

EU regulations aimed at curbing passenger car emissions begin at the end of the year when fleet-wide emissions should fall to at least 95g. Carmakers will face penalties if they fail to meet their specific targets.

Light commercial vehicles will also be able to unlock payments, although the emission limit will be raised to 155g of CO2/km instead. 

The plan also foresees bulk orders of heavy vehicles powered by natural gas, an aggressive rollout of electric charging points – 50,000 by 2023 – and wider deployment of e-bike rideshare schemes.

Electric vehicle output will be expected to increase by manufacturers to at least 700,000 units per year, so as to protect Spain’s 12% share of the European car market. The sector will also have to help promote the rollout of charging points.

The government is targeting at least 800,000 chargers by 2040 and its plan insists that all companies in the automotive chain must help work towards that goal, which should include ultra-fast chargers for both cars and motorcycles.