The Spanish government on Tuesday approved an extension of its Moves III Plan to encourage the purchase of electric vehicles (EVs).

The scheme, which is retroactively effective from the start of 2025, will remain in place until the end of the year. It offers subsidies of up to 7,000 euros (7,560 U.S. dollars) for individuals who buy an electric car and scrap their old vehicle. For commercial vehicles, the aid increases to 9,000 euros.

The plan also maintains a 15 percent income tax deduction - up to a maximum of 3,000 euros - for the purchase of EVs. Additionally, it includes support for the expansion of Spain's national network of EV charging stations.

The measure was announced by minister for ecological transition Sara Aagesen following the cabinet's weekly meeting. "This measure will help sustain demand for electric vehicles and shield our sector from external turbulence," Aagesen said.

She emphasized that the Moves III Plan aims to give certainty to consumers looking to invest in EVs, while also supporting complementary industries within the electric and electrified automotive sector.

"In total, we've mobilized nearly 3 billion euros to promote electric mobility and infrastructure," Aagesen said.

According to the European Alternative Fuels Observatory, 133,699 electric vehicles were sold in Spain last year. However, overall registrations of fully electric and plug-in hybrid vehicles dropped by 3.9 percent compared to 2023, accounting for 11.4 percent of total car sales. (1 euro = 1.08 U.S. dollar)