The Canary Islands have seen a significant drop in car sales to private buyers, with a drop of 20.7% in February 2025. However, the rent-a-car sector has helped stabilise the market, demonstrating its vital role amid the region's strong economic performance, primarily driven by tourism.
According to the Federation of Car Importers and Dealers (Fredica), vehicle registrations fell slightly by 0.18% in February compared to the same month last year. The general car market, which registered 3,599 new vehicles, saw a 0.33% decrease, with the private buyer segment experiencing the sharpest decline. Business vehicle sales also dipped by 1.32%, while the rental market surged with a 64.69% increase in registrations.
Commercial vehicle sales rose by 17.39%, with 925 units registered, while the industrial vehicle market struggled with a 14.12% drop. The two-wheeled vehicle market also fell by 11.79%.
Market Performance So Far in 2025
Overall, 11,386 vehicles have been registered in the Canary Islands so far this year, a 3.62% increase compared to 2024. The tourism vehicle segment saw 7,298 new registrations, a 3.68% rise. Light commercial vehicles also performed well, with a 19.46% increase in sales. In contrast, the industrial vehicle market fell by 7.05%, and two-wheeled vehicle sales dropped by 6.97%.
Fredica noted that while the private car market, the largest segment by volume, has struggled, the demand for rental vehicles has partially offset this decline. The surge in tourism has boosted the broader economy, positively impacting light commercial vehicle sales. However, the industrial vehicle market remains volatile due to its cyclical purchasing patterns. The sharp decline in the motorcycle market, which had enjoyed years of growth, was also noteworthy.
Manuel Sánchez Moreno, President of Aconauto, emphasised the need for a stable and accessible incentive plan to renew the vehicle fleet. He warned that without proper support for families, the car market could continue to deteriorate.
Petrol Car Sales Drop by 32.38%
Fredica highlighted the most striking trend in the tourism vehicle market: petrol vehicle sales, which still make up 53% of registrations (3,752 units), fell by 32.38% compared to the same period last year. Plug-in hybrids accounted for 12.74% of the market, showing a 23.72% year-on-year increase, with 897 units sold.
Pure electric vehicles represented 6.56% of the market, with a substantial 38.32% growth and 462 registrations up to February. Plug-in electric vehicles also performed well, with a 20.39% rise, accounting for 5.28% of the market share with 372 units registered.
While petrol vehicles remain the dominant choice, their market share is gradually declining. Hybrid vehicles are increasingly being seen as a viable alternative to traditional petrol and diesel options, reflecting the broader shift towards electrified transport solutions in 2025.
