Car sales in Spain dropped 13.9 percent year-on-year in March 2013 to 72,677 units, no thanks to a seasonal effect that offset a government subsidy scheme designed to stimulate the carmaking sector. According to industry association Anfac, carmakers sold 180,724 vehicles in the first three months of the 2013, reflecting an 11.5-percent decline compared to the same period in 2012.
According to Anfac, the subsidies aimed at stimulating car sales are helping the auto sector avoid sharper declines. The industry association remarked that the March numbers were impacted by the seasonal effect of Easter, which resulted to the loss of three working days.
Spain’s subsidy scheme was reintroduced in October 2012, and has been instrumental in encouraging private customers to purchase vehicles and has resulted to around 1,000 new deals a day, Anfac said.
Under the subsidy program, a customer who turns in a used car get a EUR2,000 rebate on a new car. The rebate is funded in part by the state and in part by the carmaking industry. Anfac communications head David Barrientos in a statement said that the company car sector continues to be very worrying as it continues to post declines of over 20 percent. Car sales in the country are deeply affected by high unemployment and limited credit.