just-auto.com

SPAIN: Incentives spur October sales

By just-auto.com editorial team | 2 November 2009

New car sales in Spain rose strongly for the second straight month in October as a result of a government incentive programme, which was extended last month into 2010.

Spanish car manufacturers' association ANFAC said, in a statement cited by AFP, that 98,202 cars were registered during the month, 26.4% up from the 77,686 sold in October 2008.

New car registrations rose 18% in September, the first increase since April 2008.

Spain posted a 28% decline in new car registrations last year - its biggest-ever for a year - as the country slid into its first recession in 15 years due to the impact of the international financial crisis on an already weakened building sector.

The drop in sales began easing after a government subsidy for new car purchases of between EUR1,500 and EUR2,000 (US$2,200 and $2,950) came into effect in mid-May.

Last month industry minister Miguel Sebastian announced the government would provide an extra EUR40m for the programme to allow it to continue for the rest of the year and would set aside more funds, the amount of which is yet to be determined, to allow it to continue in 2010.

During the first 10 months of the year, Spanish sales fell 24.4% to 775,378, according to ANFAC.