Tourism boom in the Canary Islands: new car sales on record!

Tourism boom in the Canary Islands: new car sales on record!

In the Canary Islands, sales figures in the car market are showing a positive development, especially in the new car sector. Loud Tenerife News New registrations rose by 7.8 percent to a total of 24,089 vehicles in the period from January to the end of April 2023. This is largely due to the boom in the tourism sector, as sales to car rental companies increased by an impressive 57.29 percent during this period.

In contrast, the private market for cars and SUVs recorded declining numbers. Sales to private customers fell by an average of 13 percent over three months. This development is partly due to the general reluctance of consumers in the face of rising interest rates and inflation, which leads to a reduced willingness to buy. Nevertheless, the industry as a whole benefited from government incentives for fleet renewal, which led to a 26 percent increase in investments in April.

Dynamics in the used car market

The used car market in the Canary Islands is dynamic over the same period. Between January and April 2023, 39,361 vehicles changed hands, which corresponds to an increase of 31.39 percent compared to the same period last year. Almost 60 percent of used cars purchased privately are older than ten years, bringing the average age of registered vehicles to 14.5 years. Compared to other regions, the proportion of older cars is significantly high here.

Another interesting aspect is the development of drive types. While sales of diesel vehicles fell significantly by 32.68 percent and their market share fell below three percent, demand for gasoline vehicles rose by 10.63 percent. Hybrid vehicles play a central role in the change towards more efficient and environmentally friendly drives. In contrast, purely electric cars only recorded a slight increase in sales of eight percent, due to high prices, inadequate charging infrastructure and a lack of subsidies.

The improved delivery times for new cars should also contribute to stability in the market, but the private sales sector remains challenged. The numbers make it clear that despite a positive trend in new car sales, declines in private sales and challenges with electric vehicles continue to be significant issues for the industry.