Spain will introduce its incentive scheme to boost cars sales on Monday, under a week after announcing it, giving regional governments, and carmakers who are expected to contribute, little time to prepare.
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New car sales in Spain fell 28% to 1.1m last year from 1.6m in 2007, but the sales slump has since accelerated further, down 46% to 67,200 units last month compared with April 2008.
The government will pump EUR100m (US$135.6m) into its new car scheme in an attempt to kick-start demand. Consumers buying a new car will receive EUR2,000 towards a vehicle costing up to EUR30,000. EUR500 will come from the national government, EUR500 from regional governments and the rest from automakers.
The measures, which it is hoped will subsidise the purchase of 200,000 vehicles, will remain in place for a year or until the EUR100m is spent, the government said.
Prime minister Jose Luis Rodriguez Zapatero said on Tuesday the measure would be put in place this summer, but decided to fast track the plan after meeting with car manufacturers and local communities on Thursday, the government added.
