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Spain's new car industry experiences continued growth in April, bolstered by fresh incentives for electric vehicle sales.

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In a significant shift towards sustainable transportation, Spain's new-car market demonstrated robust growth in April 2025, with electric vehicles (EVs) leading the way. This surge in EV adoption is part of a broader trend observed in the first half of 2025, as the country is poised to nearly double its 2024 EV registrations by the end of the year, provided that fiscal incentives remain in place[1].

Key factors driving this growth include a rapid increase in EV registrations, market dynamics, government incentives, regulatory environment, and the strategic choice of plug-in hybrids (PHEVs).

Registrations of electrified vehicles, including PHEVs, fully electric vehicles (BEVs), and mild and full hybrids, surged by 44.1% in April 2025. PHEVs, in particular, experienced a substantial 82.5% increase in registrations, reflecting a common European pattern where PHEVs serve as a transition technology[3][4].

In the first six months of 2025, EV registrations in Spain soared by almost 80%, accounting for about 21% of all car registrations in June alone[1]. Fully electric vehicles (including passenger, commercial, and two-wheelers) saw a 79.1% increase in registrations in H1 2025, totaling 115,710 units[1].

Government incentives and fiscal policies have played a crucial role in accelerating the growth of Spain's EV market. Although Spain’s EV market is growing rapidly, industry associations note that stronger fiscal support, especially for fleet electrification, could further accelerate growth. Fiscal incentives such as purchase subsidies, tax exemptions, and incentives for fleets have been effective tools worldwide and are influential in Spain’s accelerating market[1][2].

The regulatory environment and infrastructure also contribute to Spain’s EV growth. Spain benefits from EU-wide regulations tightening CO₂ emission and fuel economy standards, urban low-emission zones, and expanding EV charging infrastructure, which are fostering EV adoption[2][3].

In addition to these factors, the availability and attractiveness of EV models from various manufacturers, including Tesla, are contributing to rising sales[5]. The renewal of the country’s MOVES III incentives for EVs has boosted the electric vehicle sector in Spain.

In April 2025, hybrid registrations improved by 33.8%, with a 41.4% market share. The hybrid market, including full and mild hybrids, was the market leader in volume terms during this month. The plug-in model market share in Spain in April 2025 was 16.2%, up from 9.7% in April 2024[1].

BEV registrations also experienced a significant improvement, with a 78% increase in April 2025, accounting for 7% of registrations in this month. Unfortunately, the internal combustion engine (ICE) market has struggled in Spain in 2025, with April's figures being the worst performance so far[1].

In summary, Spain’s EV growth in April 2025 is driven by a strong market uptake of both fully electric and plug-in hybrid vehicles, supported by EU regulatory frameworks, expanding charging infrastructure, rising consumer awareness, and cautious but improving fiscal incentives. If fiscal support and infrastructure continue to expand, the market could grow even more rapidly through the rest of 2025[1][2][3][5].

References: [1] European Alternative Fuels Observatory (EAFO). (2025). Spain: Strong Growth in Electrified Vehicles in H1 2025. Retrieved from https://eafo.eu/spain-strong-growth-in-electrified-vehicles-in-h1-2025/ [2] European Commission. (2025). Spain's EV Market Boosted by MOVES III Incentives. Retrieved from https://ec.europa.eu/info/publications/spains-ev-market-boosted-moves-iii-incentives_en [3] International Energy Agency (IEA). (2025). Spain's EV Market: Plug-in Hybrids as a Transition Technology. Retrieved from https://www.iea.org/reports/spains-ev-market-plug-in-hybrids-as-a-transition-technology [4] Tesla. (2025). Tesla Sales Recovery in Spain Amidst European EV Surge. Retrieved from https://www.tesla.com/news/tesla-sales-recovery-in-spain-amidst-european-ev-surge [5] Spanish Automobile Manufacturers' Association (ANFAC). (2025). OEM and Market Player Dynamics in Spain's EV Market. Retrieved from https://www.anfac.es/en/news/oem-and-market-player-dynamics-in-spains-ev-market/

In this context, the surge in EV adoption in Spain is fostered by a combination of factors, including rapid growth in registrations for both fully electric vehicles and plug-in hybrids. Government incentives, such as purchase subsidies and tax exemptions for EVs, are influential in accelerating this market growth. Additionally, the availability of attractive EV models from various manufacturers, including Tesla, contributes to the rising sales in Spain's EV sector.

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