Decline in Spanish new car sales slows as scrappage takes effect

The rate of decline of new-car sales in Spain eased in July to a fall of 9 percent from a year earlier compared with a 15.8 percent drop in June as their own scrappage incentive took effect.

Car sales to July 29 were 91,623 units and could rise to above 100,000 by the end of the month, Spanish car maker group ANFAC said on Thursday.

“This good figure is due to the solid uptake of the government’s Plan 2000E,” ANFAC said in a statement. In May, under a 200 million euro ($281.9 million) plan, Spain began offering 2,000 euro subsidies to new-car buyers struggling to counter credit restrictions and soaring unemployment.

The program is in addition to the government’s 700 million euro Plan-Vive, which subsidizes buyers of energy-efficient cars and the replacement of old vehicles.

Source: Automotive News