Spain new car registrations drop 42 per cent

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.

Image by gluemoon under Creative Commons.