New car registration in Spain, continued their strong decline which began last year. In January, new car registrations plummeted 41.6 per cent to a 14 year low of 59,385 as confirmed by Spain’s automakers’ association ANFAC on Monday.
The deceleration in the current economy and rising unemployment has resulted in a strong reduction in private consumer spending, especially for a new car. Buying a car in Spain, is no longer a high priority, and even those that do wish to buy a car, face tougher credit restrictions from their banks.
ANFAC announced last week that the automaker sector will suffer a heavy blow in Spain. Initial calculations estimate the 2009 car market at only 900,000 units, a figure not seen since 1995, or 14 years.
ANFAC is pushing for support from government, similar to plans implemented in Germany, the UK and Sweden.