New car sales decline slows in Spain

3rd August 2009, Comments 0 comments

Last month saw the registration of 108,222 new vehicles – passing the 100,000 mark for the first time since July 2008.

Madrid – New car registrations in Spain fell 10.9 percent in July from the same time last year, a decline that was less steep than previous months due to the introduction of a government subsidy for new vehicle purchases, industry data showed Monday.

A total of 108,222 vehicles were registered during the month, the first time since July 2008 they have passed the 100,000 mark, Spanish car manufacturers' association ANFAC said in a statement.

It said the figures mark a "continuation of the slowdown of the decline" due to "the positive effects of the market of direct aid."

A government subsidy for new car purchases of between EUR 1,500 and EUR 2,000 came into effect on 18 May.

In 2008, new car sales plunged 28 percent, the largest-ever annual decline as the country slumped into its first recession in 15 years as the global credit crunch worsened a correction already underway in its property sector.

Spain's auto manufacturing sector is the third-biggest in Europe and accounts for just under 10 percent of the country's economic output and 15 percent of exports.

AFP / Expatica

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