MADRID — The Spanish government approved a plan to spend up to 800 million euros ($950 million) until 2023 to encourage electric car sales.
Private buyers would be entitled to subsidies of up to 7,000 euros per car, while authorities in small towns and companies buying fleets to use as taxis could get more. Buyers of electric vans would get up to 9,000 euros.
The bonus program will start Saturday, the Energy Ministry said on Friday.
The incentives follow announcements of government plans to promote the domestic production of battery-powered cars as well as car batteries.
Volkswagen Group CEO Herbert Diess said last month that the automaker plans to turn the Cupra performance marque of its Spanish brand, Seat, into a full-electric brand and build only battery-powered cars at Seat’s Martorell factory near Barcelona.