Sales in Spain Drop 20.3% in November image

Auto sales in Spain dropped 20.3% in November, according to car manufacturers’ association Anfac.

The government’s new car subsidies, which were introduced on October 1st, helped sales fall by 15% points less than expected. The 76-million-euro ($100-million) subsidy scheme was aimed at stimulating the sluggish market during the economic crisis, by offering customers price cuts at the purchase of an electric vehicle if they handed in a vehicle more than 12 years old.

The PIVE program customers buying an EV get a 2,000-euro reduction. From the beginning of the program, which is expected to run out of money In January, 40,000 EVs have been sold. Spain has been severely affected by the European crisis and auto sales have also been hurt by the government-backed austerity measures, such as the 3% increase in value added tax beginning from September 1st.

Last month there were 48,155 vehicles sold in Spain, a decrease from 60,395 units in November 2011. According to the Spanish Association of Automobile Manufacturers, from January to November new vehicle registrations fell 12.6% to 648, 392 units compared with the same period last month. According to GANVAM president Juan Antonio Sanchez Torres dealerships hoped to reach the end of 2012 with 700,000 vehicles sold.