Data released by Spanish automotive trade association ANFAC shows that Spain’s car market recorded sales of just 77,660 units in October, a year-on-year decline of 40%.

Cumulative car sales for the January-October period stood at 1,025,651 units – some 23.8% under the same period of last year.

October’s large sales decline follows similar reversals in recent months reflecting a severe economic slowdown in Spain that has quickly translated into lower auto sales.

“The seriousness of market circumstances, especially the financial crisis and the lack of credit to finance durable goods purchases, together with the increase in unemployment and families’ ever-decreasing disposable income, continues to reduce the purchase of vehicles,” Anfac said in a statement.

Spain’s carmakers have announced production cutbacks and layoffs in recent weeks in response to lower demand, provoking worker protests.