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Manufacturers demand more tax support: “If we want to make electric cars in Spain, we have to sell them”

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Major carmakers are demanding more tax relief and incentives for electricity purchases if Spain is to maintain its number of car factories. “If electrified cars don’t sell, why are we going to make them in Spain,” asked Wayne Griffiths, chief executive of Seat and Cupra and president of the National Association of Car and Truck Manufacturers (Anfac). “The decision-making centers are outside,” recalls the head of the employers’ association during the presentation of the road map for the coming years.

For this association, the evolution of production and, above all, last year’s sales data is not positive. 2022 was very difficult, especially in Spain. The reason is that the sales data remained at 800,000 units. “It’s way below where it should be at 1.2 million,” Griffiths said. For this reason, he notes that Spain is “the worst country in Europe compared to the pre-pandemic period. We lost 35% of the market, this is the most affected country.”

The Seat chief also hit out at what he sees as the “failure of electrification”. “Europe is split in two” as Northern Europe has an average of 20% EVs, while “Spain is below 10%”. “If we want to reach the goals by 2035, we have to accelerate. This is the best year for sales of combustion cars. “Instead of selling 78,000 electrified cars, 120,000 should have been sold. We should have 40,000 charging points and we did not reach 17,000,” he said.

Three requests

In this context, the manufacturers turn to the government to demand battery in three areas: assistance for purchase, taxation and promotion of electric charging. “We have to encourage the consumer to make the leap, we have placed the offer in different ranges and we have to facilitate consumer demand,” said José López-Tafal, Anfac’s general director.

The employer suggests that Moves’ assistance plans “have improved, but the reality is that they are not very effective and it is necessary to state that the discount is at the time of purchase and not wait several months for it to hit your account”. added

“In Spain, the aid is calculated as income in the tax declaration, this is an exception in Europe”, and that “the coordination of the plans is maximized, because there are 17 movements for passenger cars and another 17 for heavy vehicles”.

Regarding taxation, Anfac is calling for a total reform of registration and circulation tax, as well as company and self-employed VAT, and the installation of charging points in companies and IRPF. As for the third leg, they are asking for electrification to be accelerated because they say “it is the state’s business”.

Changes in PERTE

Along with this criticism, the Association of Car Manufacturers Employers emphasizes the positive relationship with the Prime Minister, Pedro Sánchez. Also with the new Secretary General of Industry and Small and Medium Enterprises, Francisco Blanco. “Cooperation with the President of the Government is very good, he supports PERTE Vec from the beginning [del vehículo eléctrico] and our industry,” affected the president of Anfac. He also requested a new meeting with Sanchez.

As for PERTE’s new terms, Griffiths suggested it would be “necessary” to extend investment timelines to avoid funds remaining undistributed.

“It’s positive that they recognize that PERTE terms need to be more flexible.” Instead, he confirms that it is “not just for the government to decide, but for the European Commission to allow flexibility”. “We have never seen a 3 billion industrial project. It was new for everyone and we have to look for the decisions that have been made in Brussels.” to summarize.

Source: El Diario

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