Figures revealed by Spanish car makers association ANFAC (Asociación (Nacional) de Fabricantes de Automóviles y Camiones ) show sales of new cars in Spain fell 37.6% in October and is the country’s fourth straight double-digit monthly drop following the end of government subsidies.
New car sales fell 61,366 units after slipping 26.9% in September.
“The October fall reflects a drop in the market to levels not seen for 15 years,” ANFAC said. “If the automobile market does not recover, Spain will be less attractive to maintain current production levels.”
Government subsidies to help people buy new cars ran out at the start of July, coinciding with an increase in sales tax (VAT), which prompted a peak in retail and large item sales in June.
Car sales to individual buyers, the largest component of total sales, fell the most and were down more than 50 percent in October, ANFAC said.