Government scrappage programs helped boost year-on-year car sales last month by 43% to 265,000 units in France and 25% to 90,600 cars in Spain, according to carmaker associations in the two countries.
Passenger car and commercial vehicle sales in France totaled 2.64 million last year, up 5% from 2008, reports CCFA. Analysts warn that demand could slump as the country’s scrappage incentive is reduced to €700 from €1,000. Renault SA says it will pay its customers the €300 difference over the next two months. The company tells BFM radio it expects strong sales in France through the next six months.
December sales in Spain topped year-ago levels for the fourth straight month, according to ANFAC.
Experts predict year-on-year demand will remain roughly 25% higher through June but then slow when the government raises the value-added tax by two percentage points to 18% in July. Total sales in Spain this year are expected to equal last year’s 953,000, which represents an 18% drop from 2008.