Spanish car sales jump 8% in January on gov't subsidies

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MADRID (Reuters) -- New-car sales rose 8 percent in Spain in January as government subsidies continued to boost deliveries, car manufacturers' association Anfac said today.

The rise was the fifth consecutive month of growth in the market.

A total of 53,436 cars were sold in January, boosted by the government subsidy, known as PIVE, which has been extended four times, the association said.

Under the scheme, car owners who scrap their old car and buy a new one get a subsidy of 2,000 euros, half from the government and half from the carmaker.

In January, Spain expanded the program by a further 175 million euros ($238 million), making a total of 465 million euros that the government has invested in the project.

The subsidies indirectly boost public coffers as cars in Spain are subject to a registration tax as well as value-added tax.

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