Junta demands more funds from Madrid as electric car subsidies run out for second time this year in Malaga
More than 1,500 buyers of EVs across the region could be excluded from the aid scheme if more funding is not forthcoming amid booming electric vehicle sales across the province
Andalucía's regional government is calling on central government in Madrid for an additional 25 million euros to cover new applications to the electric vehicle (EV) purchase aid scheme (MOVES III 2025) after funds ran out for the second time this year. A few weeks ago, the Junta transferred surplus funds from the EV charger allocation to the vehicle purchase allocation because the initial funding pot had run dry. However, given the high demand and waiting list, this money disappeared within days.
Regional minister for energy Jorge Paradela explained this in the regional parliament in Seville, adding that the Andalusian Energy Agency (AEA) has resolved nearly 50% of the 14,400 applications submitted for processing in three months.
1,500
buyers will be excluded from this aid if more funds are not made available
The Junta's appeal is directed to the Ministry for Ecological Transition and the Demographic Challenge in Madrid. The Junta believes that this would make it possible to cover the 1,500 applications for aid that are currently on the waiting-list and to respond to new requests once the funds are exhausted.
To date, the AEA has received more than 15,800 applications for both cars and charging points, of which approximately 14,400 have been accepted for processing. Some 1,500 applications for vehicles remain on the waitlist, pending the transfer of new funds from central government.
15,800
applications have been submitted under the 2025 MOVES III programme, including both direct vehicle purchase subsidies and those for charging stations
SUR has been reporting on the strong demand for these subsidies, given the sector's significant growth this year. In Malaga, electric vehicle sales are doubling in number.
The Moves III Plan has exceeded expectations. The initial pot of 40 million euros ran out and 13 millions more were added, drawn from the more generous allocation assigned to chargers.
What is Moves III?
The application period for Moves III in 2025 opened on 15 July for all of Andalucía and the funds dried up in just over two months. The late opening of the application window and the surge in demand for cleaner cars have contributed to this phenomenon, which has also been influenced by the implementation of low-emission zones. Another key point: EV sales have shot up by 115% in Malaga so far this year.
What happens if I apply for assistance and the budget is spent? A waiting list is created and applications are processed in order of receipt.
Which vehicles are eligible for aid? These are the subsidies
In the case of fuel cell or hydrogen vehicles, the aid ranges from 4,500 to 7,000 euros, depending on whether the owner's previous vehicle is scrapped or not. For pure electric and plug-in hybrid cars with a range of between 30 and 90 kilometres, the range is 2,500 to 5,000 euros. For such cases, the sales limit is 45,000 euros (53,000 euros for 8- or 9-seater vehicles).
If we are talking about electric, plug-in hybrid or hydrogen vans with a range of more than 30 kilometres, the price range is 7,000 to 9,000 euros.
Turning to motorcycles, if they have a power equal to, or greater than, 3kW and a range of over 70 kilometres, the aid is between 1,100 and 1,300 euros. However, the sales price limit is up to 10,000 euros.
Delays
Demands from the automotive sector for faster grants to be made have been common in every round of this scheme. In some cases, delays in payments have been as long as two years. Linking the aid to the time of purchase is one of the proposals made by trade organisations such as the Malaga association for dealerships and employers in the automotive sector (AMA). Its president, Carlos Oliva, confirms the boom in electric car purchases and that there are many buyers on the waiting list for these subsidies.
What about personal income tax (IRPF)?
There is also another type of advantage, via personal income tax (IRPF), with 15% tax relief. These are compatible and a maximum limit of 3,000 euros of tax relief is set. The maximum deduction base is 20,000 euros.
Good year for the sector
In Malaga, 2025 is proving to be a good year for eco-friendly vehicles. Electric, hybrid and plug-in hybrid vehicles totalled 13,627 units, an increase of 51%. Significant declines were seen in petrol and diesel vehicles, with falls of 10.8% and 47.3% respectively. There were 5,706 registrations for petrol and 555 for diesel.
In terms of eco-friendly vehicles, hybrids continue to account for the largest market share: 6,707 registrations, up 30% year-on-year. In second place are electric vehicles, with 1,976 acquisitions, representing an exponential increase of 105%. They surpass plug-in hybrids, with 1,631 registrations, a 30% increase.
