Electric Vehicle Adoption and Regulatory Challenges in Valencian Car Rentals

No time to read?
Get a summary

Rental companies across the Valencian Community face a tense reality as new climate legislation pushes them toward a mostly electric fleet. Nine percent of their vehicles must be entirely electric this year. Companies view this mandate as a hurdle rather than a help, citing high vehicle prices and a shortage of public charging infrastructure that could deter customers.

“We possess a Nissan Leaf, yet it rarely finds buyers because customers fear the battery will deteriorate. The practical issue is we often pause operations,” says Mauro Derqui, president of the Community Rental Car Businessmen’s Association (Aecoval). He notes a recent meeting with the Generalitat where sector concerns were laid out to the regional directorate, and a request was made for bylaws changes and additional support.

Data from the association shows an average fleet value for these firms with an environmental utilization rate around 85 percent. When the fleet shifts to electric vehicles, utilization tends to drop to about 55 percent. The primary reason is customers’ fear of running out of charge due to insufficient public charging points. The industry argues that adequate charging infrastructure must be in place before mandating a specific share of electric vehicles.

A car charger in a garage. Alberto Barbara Robles

Additionally, the sector faces a challenge with charging points located at some gas stations or public parking lots. These setups require the rental app and a card payment method, a process that can deter international tourists who are a core customer base. The sector advocates that charging services be accessible via standard card payments and simple sign-ups to avoid friction.

Beyond the practical issues, the industry notes that longer charging times reduce fleet turnover, extending the time between rentals. They also question the electricity capacity at high-demand points, asking whether there is enough power at airports and other hubs to support a full electric fleet.

20 million

In addition to shorter operating windows, electric vehicles come with higher upfront costs. The association estimates each electric vehicle costs approximately 30,000 euros, with subsidies potentially covering up to 18,000 euros. This means a roughly 70 percent higher cost for SMEs in the sector. Overall, Aecoval calculates that requiring nine percent of the fleet to be fully electric could cost Valencian companies around 20 million euros. Some firms report challenges accessing financing through Moves Plan for purchasing these vehicles.

Lack of cars threatens tourist rentals

While the sector is committed to emission reductions, it emphasizes that the rental fleets are not currently oversized. Fleets are two years old on average, far younger than the broader vehicle stock on Turkish roads, where electrification remains limited. The proportion of electric vehicles is still a small share of the market.

bonds

Facing these pressures, Aecoval has asked the Generalitat to adjust regulations to allow greater flexibility. They propose recognizing hybrids and plug-in hybrids within the required mix and friendly terms for more affordable vehicle options. These vehicles are seen as more acceptable to customers and do not suffer from the same autonomy concerns as all-electric models.

A connected electric vehicle. david revenge

In addition to regulatory changes, rental firms request financial assistance for vehicle purchases and incentives to encourage use. They suggest creating a network for electric vehicle charging, modeled after hotel partnerships to stimulate demand for electric cars among drivers.

They also demand a detailed, publicly available map of charging points and a uniform card payment system across all locations to streamline the charging experience for customers.

records

On a broader national scale, alternative engines already account for about a third of cars and SUVs registered in Alicante. Between January and April, they represented 33.44 percent of the provincial market, totaling 4,846 units. This figure sits below the national average, where such vehicles account for 41.72 percent, largely due to the heavy role of rental companies in the region still relying on gasoline. Of the total, hybrids accounted for 3,591 units, marking a 65 percent year-over-year rise; pure electric registrations rose by 59 percent to 1,061. In contrast, only 194 petrol-powered cars were sold, reflecting a tepid reception for traditional engines.

These shifts illustrate a broader trend toward electrification, even as the rental sector grapples with practical barriers that slow adoption.

No time to read?
Get a summary
Previous Article

Ilya Averbukh reflects on Kostomarov's health and the road ahead

Next Article

Reinforced Trade Ties and BRICS Dynamics: A North American Perspective