March Auto Sales in Spain Down 14% image

Auto sales in Spain have dropped 13.9% in March, after a 9.8% drop in February.

According to Industry association Anfac, automakers sold 72,677 vehicles in Spain last month and 180,724 vehicles being sold during the first three months of the year, a drop of 11.5% compared with the same period last year. The government’s subsidy scheme is aimed to stimulate the crisis affected auto sector and to avoid steeper falls.

Anfac said that sales were also affected by the seasonal effect of Easter, which translates in the loss of three working days. The government’s subsidy scheme also encourages private customers to purchase vehicles. The scheme was introduced in October 2012 and has brought about 1,000 new deals daily. Those who want to take part in the program have to turn in a used car to get a 2,000 euro rebate for a new vehicle.

“The company car sector continues to be very worrying and continues to register falls of over 20 percent,” said Anfac communications head David Barrientos in a statement on Monday.

Last year, auto sales in March dropped 4.5% to 84,427 units compared to 88,397 units from March 2011. Total sales during the first quarter reached 204,119, a 1.9% drop over the same period the previous year.