Spanish auto manufacturers’ federation Anfac has welcomed the government’s introduction of zero registration tax for environmentally-friendly cars, saying the move would help boost sales in the emerging segment.
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The new law would wave registration tax for cars that emit less than 120g/km but will charge a much higher rate (14.75%) for those emitting more than 200 g/km, Anfac said.
It added that 1.1m of the 1.63m cars bought in Spain last year would benefit from the changes.
The new law is good news for Ford, Saab and General Motors which are struggling to sell flex-fuel and gas-powered cars in Spain, which has a very limited filling network.
‘Eco’ car sales accounted for a mere 7% of the market last year.
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By GlobalDataAnfac added the legislation would also have a positive impact on the market for the low and middle-priced vehicles Spain mostly builds.
The action, however, is sure to adversely affect SUV sales which have been gaining strongly here.
Despite the tax reform, Anfac reiterated that the best way to tackle vehicle CO2 emissions was to phase out older models.
“To get higher emission reductions it’s vital to retire older vehicles which account for the highest pollution levels,” Anfac said in a statement, adding that 100 current models emit the same pollutants as one in the 70s.
For this reason, Anfac called for the government to extend the ‘Prever’ trade-in reward programme beyond its 1 January 2008 deadling.
Ivan Castano
