The shift towards electric mobility remains a slow and expensive process for the automotive industry.
While electric technology is advancing rapidly, consumer demand has not kept pace. In Spain, hybrid vehicles (HEV) led the market in 2024, capturing 32.3% of registrations, with purely electric models struggling to retain value.
As reported by El Economista, the three-year residual value of electric vehicles (EVs) dropped to 48.9%—a four-point decrease over the past year and the lowest level recorded.
Compared to 2023, EVs have lost over 10 percentage points in resale value.
Fast Technological Evolution and the "Tesla Effect"
Several factors contribute to this decline. Rapid advances in battery technology, such as lithium iron phosphate (LFP) batteries, have led to lower prices for new electric models.
Automakers like Volkswagen, Stellantis, and Renault are adopting this technology, which further accelerates depreciation for older EVs.
Tesla's aggressive price reductions have also destabilized the market.
Despite implementing incentives like the Tesla Boost program in Spain—offering €3,290 discounts on top of government subsidies—Tesla saw a 75.5% decline in sales in January 2025, with only 268 vehicles delivered in Spain.
The resale value of Tesla's long-range Model 3 fell to 59.7%, the lowest in four years.
Hybrid and Diesel Models Retain Higher Value
Plug-in hybrids (PHEVs) are also losing ground, with their three-year residual value dropping to 61.7%—five points lower than in early 2024.
Sales of these models declined by 5% in Spain last year, reaching 59,707 registrations.
Conversely, non-plug-in hybrids maintain the highest residual value at 71.8% after three years.
This technology dominated the Spanish market in 2024, accounting for 32.3% of all vehicle registrations.
Gasoline-powered models rank second, retaining 68.3% of their value after three years.
The market’s volatility poses challenges for manufacturers, particularly as reduced incentives and evolving emission regulations add uncertainty.
With hybrid and gasoline models holding their value better than electric alternatives, EV adoption may face further hurdles unless market conditions improve.
