ECONOMY

Vehicle sales slump after brief recovery

vehicle-sales-slump-after-brief-recovery

Car sales posted a rapid decline in July as the growth trajectory observed in previous months came to an end. The slide is expected to continue for the next few months, while the short-lived increase in sales was not enough to offset the losses recorded from 2009 to 2013.

According to the Hellenic Statistical Authority (ELSTAT), 8,181 new cars went into circulation on Greece’s roads last month compared to 10,744 in July 2014, a decrease of 23.9 percent.

New passenger vehicles were down by 23.6 percent compared to the same month last year with 6,856 new vehicles circulating compared to 8,976 in 2014. For buses, the reduction was 16.7 percent while trucks showed the biggest fall at 25.4 percent.

Due to the jump in sales in June this year, the first six months showed increased sales versus the same period in 2014, with car sales up by 18.4 percent.

The fall in sales is expected to be significant as the growth figures include cars ordered before capital controls were enforced.

Figures from the Foundation for Economic and Industrial Research (IOBE) showed that in July 2015 only 2.5 percent of Greeks said they were likely to buy a car in the next 12 months.