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Spain's auto industry slows down in June

Spain's automotive sector entered a period of stagnation in June.

Spain's auto industry slows down in June

According to the Asociación Nacional de Fabricantes de Automóviles y Camiones'in (Anfac), vehicle production in Spain decreased by 12.2% in June compared to May, reaching 218,950 units. This figure also represents a decrease of 7.1% compared to the same month in 2023.

Gasoline and diesel automobiles accounted for 75.4% of the automobiles produced in June. Six-month production reached 1.1 million units, a simply 1.33% increase compared to the January-June period of the previous year.

Anfac CEO José López-Tafall stated, "Despite the decline observed over the past two months, the overall annual rate remains stable and above the previous year."

However, López-Tafall also highlighted a decline due to model changes and production restructuring for electric automobiles. "It is a priority for manufacturers to sell more plug-in models both in Spain and abroad. The end of purchase subsidies in countries like Germany, one of our main export destinations, has led to a sharp decline in demand, which affects orders at our factories," he explained.

Export figures were also negatively affected. Automobile shipments from Spain decreased by 15.6% in June compared to the previous month, reaching 186,813 units. This figure also represents a decrease of 9% compared to June 2023.

European markets maintained a 93.5% share in vehicle deliveries from Spain on a monthly basis. However, this share is 2.3 percentage points higher on a yearly basis. According to Anfac data, six-month exports decreased by 0.5% compared to the same period in 2023, reaching 1.17 million automobiles.

The decline in the sector is attributed to factors such as setbacks in the transition to electric vehicle production, the end of subsidies in key markets like Germany, leading to a decrease in demand, and general economic uncertainty.

According to industry experts, accelerating electric automobile production and developing comprehensive strategies to enter new markets are essential for the sector's future sustainability.

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