Year-on-year car sales fall in Balearics by 37 pct, call for further government subsidies

MADRID
CAR sales in the Balearic Islands fell by 37 percent during the first half of October in comparison to the same period in 2009, Car Dealerships Association “Ganvam” said yesterday.

The year-on-year downturn in car sales in the Balearics was closely matched by the national Spanish average. Figures provided by Ganvam show that the national decline stood at 37.3 percent - 23'334 vehicles sold in the first half of October compared to 37'465 for the same fortnight in 2009.

The Association said that a major cause of plummeting car sales was Central Government's decision not to extend the Plan 2000E subsidies which allowed purchasers of new cars to have around 2'000 euros of the cost paid by a combination of government and manufacturers' financing. Since the subsidies were ended five months ago, vehicle sales have been steadily declining said Ganvam.

The Association claims that the only way to get the industry moving again is for Central Government to find more money in its budget for subsidies. “When Plan 2000E was in operation,” said Ganvam, the effect on sales was just astonishing.