Worst October on record for car sales in Spain

Sales of new cars in Spain fell by 21.7 percent this October compared to a year earlier, car producers association ANFAC and the association of sales organizations GANVAM said on Friday. A total of 44,873 new cars were sold during the month, making it the worst October on record for the Spanish car industry with almost 15,000 less cars sold than in the previous worst October back in 1993. The average number of cars sold in October during the previous 10 years is 104,000. Analysts said it appeared the government's decision to raise sales tax on new cars sold after Sept. 1 has had a negative effect on the industry, as it has had on all retain trade since its introduction. Government sources, however, insist the benefits of the plan will be seen in November and December. The car industry did, however, see a 28.9 percent increase in sales to car hire firms. This indicates people are, instead of buying new cars, deciding to rent vehicles when necessary.