Romania's Electric Car Market Shrinks as Rabla Plus Program Allocations Cut

Romania's Electric Car Market Shrinks as Rabla Plus Program Allocations Cut

Romania’s market for fully electric cars has experienced a decline in 2024 due to reduced allocations for the Rabla Plus program, according to the Automotive Manufacturers and Importers Association (APIA). The program, which provides subsidies for electric vehicle (EV) purchases, saw its funds slashed, resulting in fewer incentives for potential buyers.

In the first half of 2024, the number of new fully electric cars registered in Romania decreased by 12.7% compared to the same period in 2023. This downturn contrasts sharply with the previous year's growth, which was bolstered by more generous government support.

Dan Vardie, President of APIA, noted, "The reduction in Rabla Plus allocations has had a direct impact on the market. Potential buyers are more hesitant without substantial subsidies." He emphasized the importance of continued governmental support to sustain the growth of the EV sector in Romania.

The Rabla Plus program initially aimed to accelerate the adoption of electric vehicles by offering substantial financial incentives. However, the recent budget cuts have led to a significant reduction in the value of vouchers provided to consumers. This has made electric cars less affordable for many, despite the growing awareness and interest in eco-friendly transportation.

Romania’s government has not indicated any plans to restore the program's funding levels, raising concerns among industry stakeholders. The decline in EV registrations could hinder Romania’s progress towards its environmental goals, including reducing carbon emissions and improving air quality.

In response to these challenges, APIA has called for a reassessment of the Rabla Plus program's budget. The association argues that sustained investment in electric vehicle incentives is crucial for maintaining market momentum and achieving the country’s green energy targets.

Source: Ziarul BURSA