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Spanish car sales up 25 percent in December

Spanish car makers’ association ANFAC revealed today that car sales rose 25.1 percent year-on-year in December, supported by government incentives following a 37.3 percent increase in November.

It is predicted that car sales will continue to rise at similar rates in the first half of 2010 due to the government’s plan to boost sales, but that demand will fall off after Spanish VAT is raised to 18 percent up from 16 percent in July.

“We believe the new Plan 2000E for 2010 will support these car vehicle registration figures over the first half of the year,” ANFAC said in statement accompanying the figures.

“Preliminary estimates for 2010 suggest after the 2-point VAT hike in July, and given the still complicated economic environment for durable goods demand, the second half of the year will be worse than the first.”

As a result, 2010 was likely to report similar figures to those seen in 2009, ANFAC said.

Car sales fell 17.9 percent in 2009 from a year earlier to 952,772 vehicles.

Source: Autonews Europe

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