Spanish new car sales only climbed by 5.68pc to 70,729 units in September compared with volumes recorded the prior month, according to data released by Asociación Española de Fabricantes de Automóviles y Camiones (ANFAC) on Oct 1.
New registrations have been capped by economic uncertainty, decimated tourism, and the outbreak of the second wave of COVID-19, prompting rental companies to postpone fleet renewals and private buyers to save rather than spend amid uncertainties.
As a result, domestic passenger car sales remain 13.5pc below levels recorded in the same month the prior year, despite the implementation of a €3.75bn ($4.2bn) stimulus programme in mid-June designed to mitigate the impact of COVID-19.
ANFAC noted that the government stimulus programme “Plan Renove” has sufficient funding (€250mn) to promote car sales through the scrapping of vehicles more than ten years old out to 2020.
The Spanish government has responded to the sharp rebound in the number of COVID-19 infections by imposing a partial lockdown in the country’s capital, Madrid, which limits travel outside their districts for essential journeys only.
As a result, Davis Index estimates new car registrations will remain depressed over the next few months, despite the availability of state aid to promote scrapping and sales, as the country grapples with the virus outbreak.