New car registrations in Spain rose 1.1 percent in July, helped by a government scrapping plan that was approved in mid-June.
There were 117,929 sales in the month, according to industry association ANFAC. It was the first monthly sales increase in 2020, as demand started slow and plunged between March and June because of COVID-19 restrictions.
Even in June, the first full month of sales after the easing of a government-imposed lockdown to combat the spread of the coronavirus, registrations fell 37 percent. Through July, sales are down 43 percent to 457,782.
The positive result in July was helped by a 6.9 percent rise in sales to private customers, to 61,931, according to ANFAC. Registrations to companies were down 0.2 percent to 40,364, and sales to rental companies slipped by 15 percent to 15,634.
The Spanish government unveiled a 3.75 billion-euro ($4.2 billion) stimulus program starting June 15. The program includes 250 million euros to replace existing cars older than 10 years with newer models and more energy-efficient vehicles.
The bonuses range from 800 euros for gasoline and diesel vehicles to 4,000 euros for zero-emissions vehicles.
According to ANFAC, 11 percent more vehicles were scrapped in July than in the same month in 2019.