Car sales by Spain’s struggling automobile industry will fall 3.8% in 2007 – up from a previous 2.3% estimate – as Spaniards delay purchases to benefit from the country’s fledgling ‘eco’ tax, dealers’ lobby Faconauto said on Monday.
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Moreover, the legislation won’t “do much” to help Spain meet the European Union’s vehicle CO2 reduction targets of 120g per kilometre by 2012, the Madrid-based association added.
Faconauto called for Spanish dealers to step up promotional efforts (to match the green tax benefits) to boost sales in the fourth quarter.
The new tax, to apply from next January, will offer incentives to consumers who buy less-polluting cars. It will bring an average 1% discount to new car prices, motivating many to delay their car purchase until then, according to Faconauto.
Automobile emissions will fall 5%, from 158g per kilometre now, in 2008. By 2010, those rates could fall to 140g per kilometre, Faconauto added, citing a study it commissioned by consultant MSI.
Faconauto reiterated Spain should launch a more ambitous Prever trade-in plan to phase out fuel-guzzling cars as the best strategy to slash CO2 rates.
Ivan Castano
