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Spanish car sales up 14% in August

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Spanish car sales up 14% in August

Sales of new cars in Spain have gone up 14% in August to 45,355 units. The advance represents the 12th month in a row of increases in sales, according to ANFAC (The Spanish Car Manufacturers’ Association).

The market demand has been stimulated by a government subsidy scheme that gives buyers of new cars a rebate for turning in their old vehicles. In July, sales climbed 11% to 83,223 cars sold in Spain.

With the help of the scrappage scheme, car owners who get rid of their former vehicles and buy a new one receive a €2,000 subsidy, split in half by the carmaker and the government. The program was extended in June by the government for the sixth time with an additional 175 million euros. The plan called “PIVE” gives prospective buyers this sum in order for them to purchase a new and more ecologic car in exchange for a 10-year or even older car.

The first eight months of 2014 recorded a sales increase to 583,663 units sold, representing a rise of 16% from the same period last year, becoming the best recorded performance since 2010. With the strongest July in two years, very small drops in May and June, it looks like the government’s incentive plan is really helping the Spanish market.

By Gabriela Florea

by Aurel Niculescu (my Google+) - Tuesday, September 2nd, 2014 - filed under Industry, News. Image credit: .
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