Market momentum for Alicante car dealers
Good news is arriving for car dealers after a tough stretch for Alicante. Three years of weak car sales were shaped by the pandemic and, more recently, by disruptions in the global chip supply chain. These challenges slowed production and created significant delays in delivering vehicles. As the tourism season approaches, expectations point to a strong summer, and the supply rebound combined with the withdrawal of rental fleets has driven a noticeable rise in registrations in the province. In the first term, registrations surged by more than forty-five percent overall, signaling a robust rebound in a market that had been strained for years.
The first half of the year shows a clear uptick. Across the board, passenger cars and sport-utility vehicles posted higher numbers compared with the previous year. In particular, the rental market, which had struggled to replenish fleets due to vehicle shortages, nearly tripled its registrations as availability improved. This trend reflects a broader shift as dealers and fleets recalibrate to the post-pandemic landscape and the tightening of inventory begins to ease.
Looking back, the sector saw 3,390 registrations in 2021, rising to 8,527 in the first quarter of the current year. Although vehicle scarcity still limits sales in certain segments, dealers have been able to secure more units, allowing expansion and greater profitability in core markets. Once restrictions eased, rental companies resumed normal purchasing, and there was more confidence about forecasting the peak tourist season. This optimism has rippled through the business community, both domestically and internationally, elevating expectations for a busy travel period and stronger economic activity.
And the momentum does not stop there. Other market segments are also expanding. Company fleet purchases rose by roughly 18.8 percent, totaling 5,754 vehicles, while individual buyers increased purchases by about 16.75 percent to 9,321. These figures come from industry associations and data providers and illustrate a broader recovery across the market.
In Alicante, registrations rose 45.54 percent, a level well above the national average of about 24 percent. The premium on rental cars in the local market helps explain this divergence, underscoring how rental demand shapes overall market dynamics in the province.
More hybrids on the road
The lift in sales is most pronounced for hybrid and electric vehicles. Hybrid and electric models accounted for a 68 percent increase in sales during the first half of the year and now represent more than one third of all registrations in the province. Specifically, they account for 35.36 percent of the mix, marking a significant shift toward electrification in the regional auto market.
Gasoline remains the preferred fuel type in Alicante, representing 57 percent of total sales, with a year-over-year rise of about 54 percent. Diesel continues to lose ground, shrinking by roughly 29.5 percentage points from the prior year and now makes up around 7.48 percent of all dealer sales in the region.
Gasoline over all, but hybrids lead the shift
Despite the continued popularity of gasoline vehicles, the hybrid and electric segment is the fastest-growing slice of the market. This shift aligns with broader national and European trends toward cleaner mobility, enhanced efficiency, and government-driven incentives that encourage alternative powertrains. The Alicante market is simply reflecting this broader transition, while still balancing consumer preferences for performance, cost, and range in daily use.
Lack of cars threatens tourist rentals
Industry groups emphasize that even with the recent upturn in volumes, Spain still has not recovered to pre-pandemic levels. Nationwide figures remain notably below those seen before the health crisis, signaling that the market still has room to rebound. For Alicante, the risk is especially tied to the rental fleet channel, which has a direct influence on tourism demand and broader regional performance.
Industry observers note that it remains unclear how higher interest rates will shape vehicle financing costs and, by extension, overall sales. The big question for the sector is how rising financing costs will interact with consumer and business demand as the market seeks to stabilize post-crisis dynamics.
Overall, the latest data suggest a stronger-than-expected upswing in car sales within Alicante, underscoring a resilient market capable of absorbing current supply constraints. The combined effect of tourism-driven demand and a gradual normalization of supply points to a more stable and optimistic outlook for dealers in the province.