Romanian car dealers raise alarm over suspended scrappage grant scheme amid deficit concerns

Romania’s major automotive associations have voiced concern after the Government suspended its flagship 2025 scrappage grant scheme, citing fiscal constraints.

The Association of Motorcycle Importers and Distributors in Romania (AIDMM) and the Association of Automobile Manufacturers and Importers of Romania (APIA) have criticized the move, calling it a political decision that threatens both industry stability and public trust. There is, however, a silver line: with the car dealers’ turnover, the country’s trade deficit will narrow.

The suspension, which comes amid a widening budget deficit, affects the Rabla Clasic and Rabla Plus programs—key initiatives that supported the purchase of low-emission vehicles through subsidies and scrappage incentives (grants).

The announcement follows earlier protests from individual electricity producers—known as prosumers—over delays in receiving grants for photovoltaic (PV) panels. These initiatives were part of a wider package of green subsidies targeting households and companies, affected by the energy transition.

The Government has not specified whether the scrappage scheme or PV grants will be permanently canceled or resumed later in the year. Critics argue that while green subsidies benefit recipients, they risk distorting market dynamics.

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