The PIVE Plan has come into force as the new hope for selling more cars in Spain

The Minister of Industry had ruled out any kind of purchase aid, but the Spanish government has had to back down in the face of a situation that was already unsustainable. No one could endure almost 37% fewer sales than in September of last year, for the month that closed 24 hours ago. The PIVE plan has entered the scene to try to halt this catastrophe that the Spanish automotive market has become.

The main sectors involved in the industry in Spain hope that the PIVE plan will deliver an increase of 50,000 more vehicles by year-end and that it could push registrations up to one million vehicles registered in 2013 if the government decides to keep the plan in force throughout next year.

The Plan, which will apply until 31 March or until the money runs out, provides aid of €2,000 (€1,000 contributed by the Executive and at least another €1,000 by the brands) for the purchase of a car rated by the Institute for Energy Diversification and Saving (IDAE) with energy efficiency labels A or B (currently the majority) with a maximum price of €25,000 before VAT.

Electric, hybrid, plug-in hybrid and vehicles running on alternative fuels may also benefit from the aid. In the case of electric, plug-in hybrid and extended-range vehicles, the €25,000 price cap to qualify for the incentive is removed.

In exchange, the motorist will have to hand over for scrapping a passenger car more than twelve years old, or a light commercial vehicle (van) more than ten years old.

Will the PIVE Plan have a future? Do you think sales will rise or will it be a failure? Should we subsidise cars when there are sectors in Spain that also deserve government subsidies?