The Crisis, Temporary And Rising Registration Taxes Led To The Biggest Ever Decline In Car Sales In January
2021-02-01 | by CusiGO
Vehicle registrations in January exceeded the most pessimistic forecasts, down 51.5% from the same period in 2020. In the history series that began in 1989, there has never been such a sharp decline in the first month of this year. Demand repression associated with the health and economic crisis and the lack of incentives to buy cars led to the collapse of the temporary Filomena, an unexpected travel companion. As a result, only 41966 passenger cars and SUVs were purchased according to the data provided by employers anfac (brand), faconauto (dealer) and ganvam (supplier and workshop).
The decline in purchases is due to the distribution channels. At present, the individual enrollment rate responsible for nearly half of the enrollment (19034) is 53% lower than 12 months ago. Due to the disappearance of tourism and economic activities, car rental companies only purchased 4535 vehicles, a decrease of 65.4%. In the case of total liquidity restriction, the company reduced by 43.9% (18397 vehicles), which may be lower than the automatic registration of brands and dealers to avoid inventory.
The shrinking market even affected passenger cars driven by alternative energy sources, which fell by 25.1%, breaking the upward trend of last year. The number of registered gasoline and diesel vehicles dropped by 58% and 55% respectively, slightly higher than the average.
In January, as brands and dealers warned, car buyers had seen that nearly half of the cars sold in Spain had expensive registration taxes. Calculate emissions according to wltp regulations and support actual driving situation. This effect increases the average emissions, which in turn affects the car registration tax.
The government has promised to revise the tax, but it has yet to wait. In addition, the increase in the main cost of buying cars coincides with the fact that the January update plan is no longer valid. The initial expectations have not been met, and $30 million of the estimated $250 million has hardly been consumed.
Anfac believes that, like other countries, there is still time to change the impact of wltp, Faconauto dealers said the market had disappeared in January and some businesses registered in December to avoid a rise in vehicle prices. Like other employers, ganvam is calling for a public agenda to address the decline in sales.