The Spanish government has announced an EUR3.75bn stimulus programme for the country’s automotive sector which is designed to boost recovery from COVID-19 and lift the economy. Governments across Europe are announcing schemes to boost their automotive sectors.
Almost 70% of the funds will be earmarked for the sector’s “value chain” (which includes suppliers and retailers) and other parts will be invested in renewing existing car fleets and electrifying public transport, Spanish prime minister Pedro Sanchez said in a speech. The plan is designed to boost sector investment and training. There are new grants for R&D and training, as well as tax breaks for firms. There are also cheap loans being made available.
Go deeper with GlobalData
Under the scheme, a car of at least 10 years old is scrapped and replaced by a new car with CO2 emissions of less than 120 grams per kilometre.
Depending on the level of emissions of the car, the range of official aid for an individual or a self-employed, ranges between EUR400 and EUR4,000 (for zero emission). The vehicle manufacturer makes an additional discount of the same amount except for electric, extended-range electric, fuel cell and ‘plug-in’ hybrids with more than 40 kilometres of electric range. In this case, the manufacturer will discount EUR1,000. The total subsidy is therefore between EUR800 and EUR5,000.
If the scrapped car is over 20 years old or belongs to a household with a monthly income of less than EUR1,500, the subsidy is extended by an additional EUR500.
The Spanish associations of vehicle and component manufacturers, ANFAC and Sernauto, said in a joint statement that the package of measures is “much needed” to revive the automotive sector, which was one of the “most affected” by the coronavirus crisis and is a driver of the economy.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
