Spain’s leftist Prime Minister Pedro Sánchez announced Wednesday €700 million of government investment to boost electric vehicle sales and strengthen the country’s key auto sector.
The scheme earmarks €400 million ($466 million) to subsidise the purchase of electric vehicles (EVs) next year, and €300 million to build new electric charging stations in regions where they are scarce.
Licenses for installing charging points will be cut, and a website listing all stations has been launched to make it easier to locate them.
Sanchez said the goal was to make electric cars both “competitive” and “affordable” for households.
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“We are going to take the wheel of the transport revolution, because we have everything we need to lead a major transformation,” he added.
To tackle climate change, the European Union currently aims to phase out sales of new combustion-engine vehicles by 2035.
But the limited size of charging networks and resistance from some manufacturers has slowed progress towards this goal.
The auto industry is pushing for more room for EV alternatives such as plug-in hybrids and highly efficient internal-combustion-engine vehicles.
Spain, Europe’s second-largest car producer after Germany, faces a “colossal challenge” in transforming its auto industry, Sanchez said.
With more than 40,000 public charging stations already in place, the country is moving steadily towards a full transition to electric vehicles by 2050, he added.
The auto sector accounts for around 10 percent of Spain’s gross domestic product and generates nearly two million direct and indirect jobs, according to government figures.
