Sales of new cars rose for the first time in two months in July, climbing 14.8% to 75,000 units, helped by a government-backed scrappage scheme, ANFAC, the car manufacturer’s association, reported.

ANFAC says that the scheme, extended in July, should help annual sales reach 700,000.

Sales in the first half of the year were down 5% to 386,400. The EUR2,000 scrappage subsidy is paid to buyers who exchange a vehicle that is at least 10 years old and buy a new, fuel-efficient model. Madrid pays half the subsidy and vehicle manufacturers pay the balance.