MADRID (Reuters) -- Spain has extended its subsidy scheme for new car purchases with a further 175 million euros ($238 million), Deputy Prime Minister Soraya Saenz de Santamaria said.
The extension is the sixth time the program has been topped up.
Under the PIVE 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.
New car sales in Spain rose 17 percent in May, largely due to a boost from the subsidy scheme. This was the ninth consecutive monthly sales rise.
Spanish carmakers' association Anfac said the subsidy support has led it to raise its full-year car sales forecast to 850,000 from 820,000.
The subsidies are part of a wider economic stimulus package, announced by Prime Minister Mariano Rajoy on Saturday that is worth 6.3 billion euros and includes measures to boost Spanish industry, research and development, energy-saving and transport.