Spain To Kick-Start Auto Industry With Grants Of Up To €4,000 Spain News

Spain has announced plans to introduce a car scrapping scheme with grants of up to €4,000 for those looking to scrap their old vehicles and purchase a more energy-efficient model.

The government’s aim is to incentivise car owners to purchase a new vehicle to help boost the country’s car manufacturing industry which has seen a huge slump in sales since the Coronavirus outbreak.

The new measures are a part of a stimulus program ‘Moves 2020’, worth around 3,750 million euros with 550 million euros set aside for the new vehicle scrappage scheme.

The subsidies will range from €400 and €4,000 with the largest subsidy for the most environmentally friendly models.

Under the new initiative, owners can take advantage of the grants by scrapping their vehicles which will need to be over 10 years old. A further subsidy of €500 will also be available to those scrapping a vehicle more than 20 years old where the owner has reduced mobility and a monthly income of less than €1,500.

Individual’s and the self-employed who buy a new vehicle, will receive a subsidy of between €400 and €800 with the amount dependent on how environmentally friendly the new vehicle is.

Beneficiaries of the grants also include SMEs and larger companies with a distinction being made for natural persons who may only acquire one new vehicle or legal entities who can benefit from purchasing up to 30 vehicles under the scheme.

For those who purchase an ECO car such as a hybrid version, the subsidy will rise to between €600 and €1,000 to be put towards a new car.

If the new vehicle is classed as having zero emissions, the subsidy will increase further to the maximum of €4,000.

A price limit on the cost of the new vehicle will apply and will be set at €35,000 or €45,000 where the buyer has reduced mobility or cars with a ‘zero’ label.

Furthermore, if you want to buy a car, it must have an A or B energy label and cannot emit more than 120 grams of CO2 or 155 grams for vans.

Although the measures are only currently draft proposals, it is expected that Congress will approve the new stimulus package later today.

Image Credit: Thomas B. from Pixabay