Belgium to face severe drop in car sales in 2012 image

FEBIAC, the Belgian auto industry association, forecasts new-car sales will drop in 2012 following the government’s decision to cancel incentives for green cars.

The ending of incentives on December 31 will affect sales on a market already weak due to the current difficult economic period, Febiac warned. “We are already noticing a rush to the showrooms this month, as people try to get hold of the final incentives. This will probably mean a sales record in 2011, but will likely have a negative effect on sales in 2012,” the association’s communications director Joost Kaesemans was quoted as saying by Automotive News Europe.

Introduced in 2007, the incentives give buyers of cars with CO2 emissions of 105 g/km or less a 15 percent saving on a new car, up to a maximum of €4,640. Buyers of cars with CO2 emissions of between 106 g/km and 115 g/km get a 3 percent reduction, up to a maximum €870.

Belgium’s new car sales were 547,347 in 2010, while in the first 11 months of 2011 sales reached 523,448. Car incentives cost the country’s budget €66 million in 2009 and are expected to reach €220 million in 2011.