Spain’s battered automobile market won’t recover from a two-year crisis until next year, according to Citroen general manager Alfredo Vila, who added 860,000 units would be sold in 2011, down from a previous 900,000-unit forecast.
Vila said the country’s general elections should provide a “breather” to consumer confidence which has been lacklustre since 2009 as the country has struggled under one of its worst recesions in history.
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But, in the second half of 2012, Spain is expected to begin showing signs of recovery while credit is also forecast to improve helping boost car purchases, Vila said.
He said the crisis has hit dealers hardest with some of them teetering on the edge of bankruptcy and closure after posting “next to zero” profitability.
“Many have done well and prepared themselves for the crisis but, if this is prolonged, some of them will probably have to close,” Vila commented.
Despite this, he said Citroen has performed relatively well and that it expects to close the year with an 8.5%-9% market share, down from 9.5% in 2010.
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By GlobalDataVila’s comments followed those of leading car manufacturer’s federation Anfac which said the market is unlikely to recover until 2013. Vila said the market should reach sales of 1.15-1.25m annual units to be considered “healthy.”
