New car sales in Spain fell 11% year on year in July to 108,222 units according to the country’s carmaker group ANFAC.

This compared to 96,706 units in June, when sales were 16% lower than in 2008, ANFAC added.

The sales fall has slowed since the May introduction of a EUR2,000 (US$2,800) subsidy for new car buyers struggling to counter credit restrictions and soaring unemployment.

ANFAC expects the US$284.9m subsidy to boost 2009 sales by 100,000 units.

It supplements the government’s EUR700m ($995.4m) Plan-Vive, which subsidises the acquisition of energy efficient cars and old vehicle replacement.