Spain auto sales soar 39 percent in April: trade data

3rd May 2010, Comments 0 comments

New car sales soared by 39.3 percent in Spain in April from the figure for the same month last year on the back of a government incentive programme.

A total of 96,637 new cars were registered during the month, up from 67,214 in April 2008, the Spanish car manufacturers' association ANFAC said in a statement.

It was the eighth monthly increase in a row.

Anfac attributed the rise to the government's subsidy of up to 2,000 euros (2,700 dollars) for new car purchases which came into effect in May last year.

The association appealed to the government on Monday to extend the plan, which is due to expire when the 100-million-euro fund is exhausted, probably in the next few weeks.

The Spanish economy, the fifth biggest in Europe, has been mired in recession since the end of 2008 as the global financial crisis hastened a correction that was already underway in its once-buoyant property sector.

Spain posted a 17.9-percent decline in new car registrations last year, following a record drop of 28 percent in 2008 as the country's worst recession in decades caused consumers to curb spending, especially on big ticket items.

© 2010 AFP

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