Spanish Auto Sales Down 21.7% in October image

Spanish auto sales dropped 21.7% in October, after a fall of 36.8% year-on-year in September.

Last month only 44, 873 new cars have been licensed for the roads, a drop of 21.7% compared with the same period last year, according to the Spanish Association of Automobile Manufacturers. From January to October sales in Spain dropped 11.9% to 600,237 units. In 2011 new car registrations in Spain fell 17.7%, reaching a 19-year-low.

Last month the Spanish government offered a new 75-million-euro ($97-million) programme which tries to encourage customers to buy energy-efficient vehicles handing in a car older than 12 years. Using the PIVE programme, buyers get a discount of 2,000 euro, half of it paid by the automaker and half of it by the government.

“The PIVE plan is a breath of fresh air for the automobile market,” said Aranzazu Mur, head of economics at ANFAC.

Aranzazu Mur also added that in about 10 days more than 11,000 cars have been reserved by potential buyers and showrooms have reported big customer interest. ANFAC said that the programme is aimed to stimulate the auto industry in the economic downturn, and that this would be reflected in sales over the next few months.