MercoPress. South Atlantic News Agency

Car sales in Chile plunge 55% in first two months of 2009

Sales of new cars and light trucks in Chile plunged 54.8% in the first two months of 2009 compared to the same period a year ago the country's automotive association ANAC said Tuesday.

These figures represent 18,096 and 40.074 units in the first two months of 2009 and 2008, said ANAC President Ivan Silva who added the sharp drop is the result of the international financial crisis' effects on the local economy.

In 2008, sales in Chile totalled a record 239,835 vehicles, up 5.3% from the previous year.

For this year ANAC expects sales to fall to about 130,000 compared to 239.000 in 2007.

Despite the drop, Silva said, the domestic automobile market is still “solid.”

“We faced several crises in the past 30 years and we've learned from them so that we're in a better position than ever to face the crisis,” Silva said.

The recent central bank rate cuts, which brought the key rate to 2.25% from 8.25% in December, and dealership sales will likely keep sales from dropping further than expected in coming months, according to ANAC.

In February General Motors was the leader in sales, followed by Hundai and Kia.