Spanish car sales rise for second month

3rd November 2009, Comments 0 comments

New car sales rose 26.4 percent up from October 2008 following the government’s introduction for new car subsidy.

Madrid – New car sales rose strongly for the second straight month in October as a government incentive programme which was extended last month into 2010 spurred sales, industry data showed Monday.

A total of 98,202 cars were registered during the month, up from 77,686 in October 2008, a 26.4 percent increase, Spanish car manufacturers' association ANFAC said in a statement.

New car registrations leapt 18 percent in September on a 12-month basis, their first increase since April 2008.

Spain posted a 28-percent decline in new car registrations in 2008 -- its biggest-ever annual decline -- as the country slid into its first recession in 15 years.

The drop in sales began easing after a government subsidy for new car purchases of between EUR 1,500 and 2,000 came into effect in mid-May.

In October, Industry Minister Miguel Sebastian announced that the government would provide an extra EUR 40 million for the programme to allow it to continue for the rest of the year and would set aside more funds, the amount of which have yet to be determined, to allow it to continue in 2010.

During the first 10 months of the year a total of 775,378 new cars were registered in Spain, a 24.4 percent decline over the same time in 2008, according to the ANFAC figures.

AFP / Expatica

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