Confirmed—“The combustion engine car’s days are numbered”—Manuel Palma, after selling more than 150,000 vehicles, warns that only manufacturers who commit to electric vehicles will survive

''From 2030 combustion engines[1] will be residual,'' this is what a Spanish businessman related to the automotive industry, Manuel Palma, said. For him, the combustion engine era is reaching its end since the future is electric, although he warns about two key factors that must improve: price and autonomy. So, let's find out more about this man and the future of combustion engines.

Who is Manuel Palma?

He is a Spanish businessman with more than 4 decades of experience in the automotive industry.

He was born in Palma del R?o (C?rdoba) in 2959, and moved to Valencia in 1980 to complete his military service. Once there, he started to work as a mechanic and he discovered his passion for buying and selling cars and it became a career that includes the management of up to 12 dealerships and the sale of more than 150,000 vehicles. At his peak, Palma sold as many as 7,000 cars a year.

Back then, the market was shared by just six brands, whereas today more than fifty compete. This shift, he explains, makes it impossible to sustain the same business model without assuming very high risks. In 2024, he decided to lease his dealerships to Grupo Marcos and step away from direct operations.

Having sold over 150,000 cars, he shifted his focus to other ventures, though he still shares his outlook on the future of mobility.

The end of combustion engines

For Palma, there are no doubts: ''Manufacturers that do not bet on electric cars[2] are going to disappear." He considers it makes no sense that an electric car is more expensive than a combustion engine car, since its mechanics are simpler. What's more, the autonomy must increase up to 800 or 1,000 km to equally compete. His vision is clear: In about 5 years, electric cars will reach that autonomy and, from that moment, the change will be irreversible.

Every manufacturer, he insists, is investing in this technology, so those continuing with combustion engines will be left out of the market.

Europe vs. China

For decades, Europe led the way in combustion engine development, but in the shift to electric vehicles, China has taken the lead. Palma notes that Chinese manufacturers have the engineers, technology, and factories, while Europe faces higher social costs.

Competing under these conditions, he stresses, is extremely challenging. He also calls for changes in taxation. "It cannot be that a gasoline Porsche pays the same VAT as an electric car. We have to create real incentives for the transition."

Clear business philosophy

Beyond figures, Palma has always defended an equal treatment toward clients.

In his group, every employee receive the same instructions: ''If the king came here to register his daughters, how would you treat him? In the same way, that's how you must treat any client, no matter their appearance or condition." In addition, he connects his passion for sports with business.

As a marathon runner with more than twenty races and ten times under three hours, he explains that the discipline of running has many parallels with management. "In a marathon, you learn to enjoy suffering. In business it is the same: you get up early, train, face problems with clients, products, and staff. If you enjoy despite the difficulties, you are on the right path."

Beyond the car business

After leaving the direct automotive sector, Palma has focused on other areas since this group now manages: three schools with more than 1,000 students, several social care residences, and a large real estate portfolio.

During the pandemic, he proudly highlights that none of the residents in his centers died. The group seeks to continue growing in fields where they can create value. His advice to students and entrepreneurs is: "Spend as if you were poor and invest as if you were rich." He recommends taking risks with moderation and avoiding that debt exceeds 25% of equity.

Clear vision of the future

At 66, Manuel Palma has a clear opinion about what's going to happen:  the combustion engine will fade out within the next decade because the move to electric mobility cannot be stopped.

If they reach affordability and extended range, electric vehicles will lead the market since they are silent, non-polluting, and easier to build.

References

1. ^ combustion engines (share.google)
2. ^ electric cars (unionrayo.com)