Autovidal, a 103 year old family business, stands at a turning point as the auto industry moves toward cleaner, more sustainable mobility. Esther Vidal, the fourth generation leader, is guiding the company to meet the challenges of modern mobility across Mallorca and beyond.
Is the consumer demanding the electric car?
In Spain, forecasts once predicted a rapid surge in electric vehicle sales, yet the market remains stalled. The lag is tied to European regulations and the sense that standards may need adjustment to align with actual demand rather than forcing rapid adaptation.
From the consumer perspective, is there interest in a more sustainable vehicle?
Without strong incentives from the central government, consumer uptake remains cautious. Spain offers purchase incentives, but buyers often receive the benefit long after the purchase. An upfront boost of around 7,000 euros at the moment of purchase would help many decide sooner and accelerate sales.
And yet, here in Mallorca, electric vehicles are abundant for rent, forming a fleet that proves practical for local needs.
In the Balearics, given the territory to be navigated, the electric share is consistently higher than the national average. Shorter distances align with the strengths of this vehicle class, and the regional propensity to rent makes sense as a practical path to adoption.
Can something more be done beyond fiscal incentives to boost electric car sales?
If Spain truly wants to position itself as a leading European market for electrics, a broad reflection is needed. One approach could mirror Nordic strategies: the emphasis on purchase subsidies first, followed by tax incentives. A realistic budget is essential because the electric car remains more expensive than its gasoline counterpart, which dampens enthusiasm.
Price is clearly a limiting factor.
After the covid era, car prices rose around 15 percent. When you add higher interest rates, those who need to replace aging, more polluting vehicles are often unable to do so. The result is an aging fleet with higher emissions, a challenge for the country. The forecast shows the fleet aging further this year, a worrying trend for air quality and energy efficiency.
Inflation and the coronavirus hit the sector hard. How did the industry respond?
Like any business that faced closures, the period was brutal. The finance team did a superb job reorganizing the operations, cutting nonessential costs, and pushing for efficiency. Recovery came quickly, but supply chain disruptions limited vehicle availability and tempered commercial aggressiveness. Sales in 2022 were strong in revenue and profitability for Autovidal and its dealers, helped by a rebound in demand once the bottlenecks eased.
Intuitively, the rise in fuel costs did not make things easier for the sector.
Indeed, society has learned to adapt quickly to a changing global landscape with many geopolitical influences. People and businesses have grown more agile in facing sudden shifts.
Turning to geopolitics, has China won the race for the electric car?
Today Chinese manufacturers offer an excellent price-to-performance ratio, and consumer trust in Chinese technology has grown, especially in electric tech. Chinese brands are rapidly gaining strength in Europe, a trend that is only beginning.
It is not just about cars. The broader transition in China reflects a shifting consumer landscape, where low-key advantages and new products challenge established players. A visit to a Beijing car plant revealed impressive developments, and the presence of Huawei stores highlighted a broader ecosystem where new mobility concepts are integrated into daily life. The capacity of Chinese brands to disrupt long-standing industry norms is already evident and likely to intensify.
Additionally, a notable shift in consumer behavior is underway. Younger generations, particularly those around 18 years old, increasingly prefer access and flexibility over ownership. They favor services and on‑demand mobility, mirroring how digital platforms like music streaming have transformed consumption patterns. The impact on car usage is undeniable.
Are brands ready for this change?
Today, younger consumers prefer renting, vehicle subscriptions, and flexible financing that allows access to a car only when needed and with tailored features. This shift supports a steady rise in demand for these services, with subscriptions and rental growing across brands. Ownership is evolving into a more nuanced, needs-based model.
Has Autovidal adapted?
Autovidal offers subscription products designed for customers who do not want to commit to ownership but still desire mobility. For example, in Mallorca the winter may require a larger family vehicle, while summer calls for a smaller, more versatile option for daily commutes. A subscription program lets customers swap models every three months, choosing by capacity, power, size, or vehicle type. The car adapts to the customer rather than the other way around, unlike traditional purchase models.
Not limited to cars alone.
The company’s fifth generation launched a startup named Watzzer. It is a mobility platform offering electric scooters, bicycles, motorcycles, and cars, all available at stations and managed via an app. A user can take a scooter or bike for a short trip, a motorcycle for longer trips, or a car for comfort, paying only for what is used. Given that Palma and several towns still restrict free-standing stations, the system has placed stations in hotels, enabling sustainable and efficient island-wide movement.
Is the real disruption mobility itself?
There is a strong belief that the real shift will come with autonomous driving. Imagine scheduling daily routes through an app, with a car picking you up at seven to reach the office by eight, and returning you home at six. In such a world, ownership would fade away, replaced by a pay-per-use model and vehicles that act as movable workspaces or lounges. Yet challenges remain, including the higher cost of autonomous vehicles and the need for robust satellite networks and smart road infrastructure.
Representative of the 5 AM Club
Esther Vidal is the fourth generation leader of a family business that posted a turnover of 160 million euros in 2023 and employs 295 people. She did not begin her professional career at Autovidal. She studied physical education in the Balearic Islands and built a quality sports facility where staff were graduates and the hall always felt welcoming with fresh flowers every morning. It worked for a decade, but trends changed. She redirected her career, creating a service company that organized entertainment and cultural events for private firms, and eventually began leading automotive marketing campaigns. In 2012 her family invited her to join, and after training she became part of the family business. Vidal, who plays for a Catalan rugby team, believes in the value of collaborations at a sporting level. There is a strong emphasis on teamwork and long-term relationships in her approach to business.
The commercial director of Autovidal is a member of the 5 AM Club, a group of executives who advocate starting the day with the sunrise. Vidal follows a mornings-first routine, exercising for an hour and a half, then grabbing time to read before work. Reading is a personal passion, and she has created a library for the group’s employees. The books are provided by Autovidal, with contributions from staff and suppliers alike. Current favorites include classics like Anna Karenina, while Kafka remains a staple in the rotation.