Government measures to boost demand for new cars supported European car sales in July, data published today showed, with French sales rising 3.1%, while the scheme helped cushion lower sales in Spain.
Governments in several major European markets have stepped in to help carmakers hit hard by an industry sales slump, launching scrappage incentive schemes which encourage drivers to buy new cars, by paying them a cash bonus when they trade in old cars for newer, greener models.
In Spain, in July, car sales fell 10.9% compared with July 2008, carmakers' association ANFAC said today.
Spain began offering €2,000 subsidies to new car buyers on May 18 and ANFAC said it expects the €200m subsidy plan to boost 2009 sales by 100,000 units.
The almost 11% fall marked the 15th consecutive monthly fall for the market, but before the scheme was launched Spanish car sales had been in free fall, with a 45.6% year-on-year drop in April.
In France, passenger car sales were up 3.1% in July, with 188,635 vehicles registered.
Carmakers have called repeatedly for a gradual end to the scrapping schemes, many of which are due to finish around the end of the year, warning that an abrupt end to the funding could spark a further plunge in sales.
Philippe Varin, chief executive of French carmaker PSA Peugeot Citroen, said last week he was worried that the scrapping scheme in Germany, which has sent car sales in Europe's biggest car market soaring, would end after the country's elections in September. German car figures are due to be published tomorrow.
The most recent figures from the Central Statistics Office on Irish car sales show that the number of new cars licensed fell again in June, though the decline was smaller than in previous months. The CSO said 4,833 new cars were licensed in the month, a drop of 34.4% compared with the same month last year. This is lower than the 60% annual drop in May and the 68% fall in April.
