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Electromobility, a new paradigm full of opportunities to invest in Castilla-La Mancha

By 15 June, 2023 No Comments

In the current context, climate change has markedly shaped the agendas of most countries in the world. Global warming and the short-term forecasts are not good at all.

Europe has set the goal of reaching 55% decarbonisation by 2030 and aiming for climate neutrality by 2050. The European target is to have more than 30 million electric vehicles on European roads by 2030. This target implies a change of direction for the entire sector and is associated with a paradigm shift.

Electromobility, also known as electric mobility, refers to the use of vehicles powered by electric motors instead of internal combustion engines. In recent years, electromobility has become the goal of a large part of society, Spain and specifically Castilla-La Mancha are no exception.

Castilla-La Mancha received a total of 567 M€ in foreign investment flows within 2022, of which 212 M€ (37.4%) came from the automotive sector.

The Government of Spain and the Government of Castilla-La Mancha have established a number of incentives to promote the use of electric vehicles, such as tax incentives and subsidies for the purchase of electric vehicles and the implementation of charging infrastructures. Some of the most relevant incentives are the following:

  • PERTE VEC (Proyectos Estratégicos para la Recuperación y Transformación Económica Vehículo Eléctrico y Conectado).
  • MOVES III Plan (Movilidad Eficiente y Sostenible).
  • Tax exemptions, deductions and tax benefits:
    • Vehicle registration tax.
    • Road tax.
    • Income tax deductions.
    • Exemption from payment in many regulated car parks.

Castilla-La Mancha offers many investment opportunities due to its size, strategic geographical location and the momentum that is being given to electric mobility in the region. Castilla-La Mancha received a total of 567 M€ in foreign investment flows within 2022, of which 212 M€ (37.4%) came from the automotive sector.

The most prominent investment opportunities are the following:

  • Charging infrastructure.
    Investment opportunities include the installation and operation of fast charging stations in strategic locations. Spain currently has a total of 18,128 charging points, of which 575 are in Castilla-La Mancha. ANFAC estimates that in order to lead sustainable mobility by 2025 there should be around 110,000 charging points installed in Spain.
  • Manufacture and assembly of electric vehicles.
    The region of Castilla-La Mancha has an unbeatable combination of industrial land, road network, talent and communication infrastructures, more than enough to host the gigafactories for the manufacture and assembly of electric vehicles.
  • Development of technology and components.
    There are major investment opportunities in research and development of high-capacity batteries, smart charging systems, energy management software, electric cable manufacturing and other key components for electric mobility. In addition, collaboration with universities and research centres in Castilla-La Mancha can be an effective strategy to further exploit these investment opportunities.
  • Maintenance and repair services.
    The increase in the electric vehicle fleet foreseen by the European Union entails the need for specialized maintenance and repair services. The maintenance of batteries, charging systems, electric motors and other specific parts of electric vehicles also represent new investment opportunities.
  • Renewable energy and storage.
    Electromobility is closely related to the use of renewable energies and energy storage. Castilla-La Mancha has almost 10,000 MW of installed renewable power (14% of the national total), which provides a sustainable source of energy for electric vehicles and their production. The storage of all this electrical energy in batteries is also a great investment opportunity.

In short, the current context encourages and secures investments in electromobility. Castilla-La Mancha offers a wide range of investment opportunities along the entire electric vehicle value chain. At the same time, this type of investment is supported by the society of Castilla-La Mancha and by a legislative framework at European, national and regional level.

Moreover, the current geopolitical situation and rising costs are leading companies in the sector to reconsider their links in the supply chain. Castilla-La Mancha is characterised as a very attractive region for reshoring and nearshoring strategies for companies in the sector located in the same time zone.