Finance Minister Cristobal Montoro said on Thursday that the Plan PIVE 3, which helps boost automobile sector in Spain, would be extended with an amount of 70 million euros (95.74 million U.S. dollars).
Montoro made this announcement during the first ANFAC and PwC Forum which is being held in Madrid on Wednesday and Thursday.
The Plan PIVE 3 gives prospective buyers who own a car of 10 years or older 2,000 euros to buy a more efficient and ecologic car.
So far, around 220,000 car owners have benefited from the Plan PIVE, which was financed with 220 million euros and whose extension it is expected to generate about 200 million euros of tax revenue according to the Minister.
Montoro said that the extension of the Plan PIVE 3, which began in August after Plan PIVE 2 ended, would be approved at the Council of Ministers and it is expected to last until late 2013.
Montoro stressed that the Plan has had positive effects on the sector, adding that the government should encourage the consumption of vehicles in the domestic market.
However, industry analysts encourage the sector to look for other markets and export outside the crisis-hit Europe because other countries offer better opportunities.
The sector expects to build about 2.2 million cars in 2013 and sell about 700,000, while in 2014 they expect to build 2.4 million. (1 euro= 1.37 U.S. dollars)