Market rebound in Alicante car sales
After several difficult years marked by the pandemic and widespread factory stoppages, the automotive market in Alicante began to recover. The sector had kept sales figures artificially low due to persistent supply shortages, a situation that gradually improved toward the end of 2022 and then fully reversed in the first quarter of the current year. That period saw a sharp rise in the number of cars and sport utility vehicles registered in the province.
Recent figures from the associations Faconauto, Ganvam, and Anfac show a clear upturn in sales, with Alicante outperforming the national average. The surge is partly linked to the revival of tourist demand in the region and its role as a gateway for visitors and seasonal residents, which buoyed buying activity despite other markets facing slower growth.
In January through March, Alicante recorded 11,210 car registrations, an increase of 98.16 percent from the previous year. This rebound surpasses Spain’s overall rise of 66.1 percent. Industry voices note that much of this improvement stems from late-year deliveries of vehicles purchased previously, which had accumulated waiting times and offered a delayed, yet substantial, boost to early-year figures.
As semiconductor bottlenecks eased and other components lined up with European production rhythms, supply constraints in vehicle transport diminished. Local dealers corroborate the trend, observing stronger overall sales though at a more measured pace than the surge in registrations. One dealer owner, Guinea Perez of Autonáutica, highlights ongoing momentum in new sales as the year progresses and notes that deliveries are catching up on the backlog from the prior year.
Experts suggest that renewed purchases by car rental fleets also played a key role. The renewal cycle in recent years had been constrained by reduced business activity and by manufacturers prioritizing other customer segments with greater discounts. As fleets begin to refresh, rental companies are placing larger orders, contributing to the overall increase in registrations in Alicante.
As the business landscape evolved, the provincial market also benefited from a more favorable production rhythm. With fewer delays in component supply and improved factory throughput, the ability to move finished vehicles to showrooms and customers improved noticeably. This helped dealers move older inventory and accommodate the higher demand from both residents and visitors.
Industry insiders point out that tourist activity continues to influence sales, especially in a region where seasonal demand fluctuates and rental operators look to maintain competitive fleets. In Alicante, rental car registrations surged in the first quarter as fleets expanded to meet the renewed appetite for travel and short-term rentals. These fleets often drive a larger portion of the market early in the year, aligning with tourism trends and corporate travel needs.
In addition to the pickup in general registrations, the region has seen a notable shift in vehicle types. A higher share of gasoline-powered models remains visible, while hybrids and electrics account for a significant but still smaller segment of the market. In the first quarter, 6,421 vehicles were gasoline-powered, representing more than half of the total. The hybrid and electric category remains below the national average, and diesel sales have diminished, reflecting broader European trends toward cleaner propulsion options.
Overall, the mix indicates a market returning to form, with buyers in Alicante balancing new car purchases with fleet renewals and a growing interest in lower-emission options. The region’s appeal to international buyers—especially from nations with strong second-home demand on the Costa Blanca—adds to the vitality of the market, even as mortgage dynamics and interest rate movements shape household spending choices. Financial factors continue to influence consumer decisions, with households considering large expenditures such as homes often delaying those plans while awaiting mortgage rate stability, freeing up disposable income for vehicle purchases. This dynamic helps explain why more families are renewing their cars even as their other big-ticket plans evolve.
Finally, company fleets have shown marked growth, with registrations totaling 2,894 in the period, a rise of 51.76 percent year over year. This underscores a broader trend of corporations updating their mobility assets as the market returns to pre-pandemic cadence and demand grows across urban and coastal markets alike.
Across Alicante, the shift toward hybrids and electrics continues, though gasoline remains the predominant choice. In the first three months of the year, 6,421 gasoline cars were registered in the province, capturing 57.28 percent of total registrations. This figure stands higher than the national average for gasoline shares, while hybrids and electrics represented about a third of sales in the province. Diesel, meanwhile, accounts for roughly 9.67 percent of sales, reflecting ongoing moves away from traditional combustion engines.
Lack of cars threatens tourist rentals
With production constraints easing and vehicle availability stabilizing, rental operators loosened buying restrictions and began to stock up in bulk. In Alicante, the first quarter saw 3,741 rental car registrations, a figure that dwarfs the same period a year earlier and demonstrates the sector’s eagerness to meet renewed demand from visitors and locals alike.
Europeans
The revival of tourism not only lifted overall sales but also expanded the diversity of buyers. The market attracted 4,575 additional registrations, a rise of 35.6 percent, driven in part by renewed interest from Europeans with second homes in the Costa Blanca. This trend coincides with testimonials from local dealers who note a broader mix of buyers, including new clients from Ukraine, Russia, and other eastern European markets, alongside traditional British, German, and Northern European customers.
While it may seem contradictory, higher interest rates have influenced purchasing behavior as well. Some households redirected funds saved for other goals toward vehicle purchases, while postponing larger commitments such as home purchases in hopes of lower mortgage costs in the future. This scenario nudges families toward renewing their cars sooner rather than later, since a new vehicle can bring immediate value and reliability while other major investments are adjusted to the new financial environment.
In sum, Alicante’s automotive market shows a robust trajectory. The combination of improved supply chains, fleet renewal by rental and corporate customers, and sustained demand from international visitors positions the province to maintain momentum through the year. The evolving mix of fuel types reflects broader European shifts toward cleaner mobility, with gasoline still dominant but hybrid and electric models gaining ground as pricing and incentives align with consumer preferences.