In January 2013, the Spanish government announced plans to extend the car-buying subsidy programme it introduced in 2011 in a bid to boost sales. In the first five months of the year, passenger car sales declined 5.8% y-o-y, to 313,576 units. We maintain our forecast for a 9.0% decline in sales in 2013, as consumer sentiment remains subdued, and believe this subsidiary programme will have little impact on sales. In an attempt to boost sales and also to increase the fuel-efficiency of vehicles on the road, the Spanish government has been running the PIVE plan (Programa de Incentivos para los …
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