The Canary Islands have seen a significant increase in registrations of electric and rental vehicles in May, which is in line with a shift towards sustainable transport and the early onset of the summer holiday season.
“We’re seeing businesses lose their fear of switching to electric vehicles. The fact that nearly 40% of electric vehicles sold in May went to corporate fleets is a very positive sign,” stated Manuel Sánchez, president of Aconauto Canarias, the regional automotive dealers’ association.
The Rent-a-Car sector saw the largest percentage growth, with registrations doubling to 1,285 units. This makes it the second most important market for the month, driven by preparations for what is expected to be a strong summer for tourism.
“Calendar timing has clearly influenced vehicle registrations,” said Sánchez. “With Easter and the start of summer falling so close together this year, April, June, and likely July are seeing very strong sales figures.”
In contrast, the corporate channel saw a 9.5% drop compared to April, though still significantly outperforming figures from May 2024. “The tourism sector continues to be a crucial engine for our industry. The strong performance of the Rent-a-Car sector reflects solid demand and growing confidence in the archipelago’s short-term outlook,” Sánchez added.
Gran Canaria Leads the Market
Gran Canaria accounted for 51% of all vehicle registrations in May, underlining its economic weight and concentration of businesses, particularly car hire companies.
All islands recorded month-on-month growth in registrations except La Gomera, which fell by 30%, and Tenerife, which posted a 14% drop. “It’s expected that smaller islands will show steeper percentage changes as they only have a small number of vehicles. Nevertheless, the overall trend is positive,” said Sánchez.
Electric Vehicle Uptake Gaining Pace
Electric vehicles (EVs) are continuing their upward trajectory. May saw 303 EVs registered, an increase of 54 units over April, and pushing their market share up by half a percentage point.
Of these, 187 were bought by private individuals, but the notable shift came from businesses, which accounted for 38% of EV sales, up from the previous month by 40 units.
“This shift shows businesses are beginning to embrace electrification. Nearly four out of every ten EVs sold this month were for corporate fleets, a crucial step forward for our sustainable mobility goals,” Sánchez commented.
This growth is aligned with the International Energy Agency's forecasts, which predict that one in every four vehicles sold globally in 2025 will be electric, with over 20 million units expected due to falling prices and high demand in emerging markets.
“The Canaries cannot be left behind in this global trend. We need consistent policies and a modern infrastructure network to support this transition, which is already well underway,” Sánchez emphasised.
Diesel Sees Temporary Resurgence
In an unexpected twist, diesel vehicle registrations more than doubled (+109%) compared to April, driven largely by corporate purchases, which accounted for 85% of diesel vehicles bought.
This bump comes in the wake of a more relaxed regulatory environment. On 27th May, the European Union approved changes to the CO₂ regulation, extending the deadline for achieving a 15% emissions reduction to 2028. This extension gives manufacturers more breathing space to adapt.
“This regulatory flexibility has renewed confidence in modern diesel technology, which in many cases emits less pollution than some petrol engines and remains essential for certain professional fleets,” explained Sánchez.
While most segments saw gains, the commercial and public transport sectors remain under pressure. Industrial vehicle and bus registrations dropped 40% and 46% respectively, with only 36 and 31 units registered in May.
The motorcycle market showed slight improvement, with a 2.1% monthly increase, though still trailing May 2024 figures by 4.3%, indicating a slow recovery in this area.
