New Car Sales in Spain Surpass One Million in 2024

By Javi West Larrañaga
(Reuters) – New car sales in Spain surpassed the one million mark in 2024 for the first time since the COVID-19 pandemic, data showed on Thursday. However, analysts and industry sources caution that this should not be seen as a sign of recovery in a sector facing significant challenges in 2025.

Changing trends in car usage, high prices, uncertainty surrounding electric vehicles (EVs), and fierce competition from Chinese brands are expected to pose hurdles for the auto industry in Spain. Felipe Munoz, an analyst at market research firm JATO Dynamics, noted that while the sales figure of 1.02 million for 2024 represents a 7.1% increase year-on-year, it remains far below pre-pandemic levels, where sales in 2019 exceeded 1.3 million.

The surge in sales was largely propelled by a significant 28.8% rise in December year-on-year, according to the data. However, Munoz expressed skepticism about the sustainability of this uptick, indicating that the sales of new cars had not rebounded strongly after the pandemic hampered demand. He stated, “I don’t think (the Spanish car market) will ever hit those numbers again.”

Post-semiconductor scarcity, European car manufacturers shifted focus toward raising prices, accepting lower sales volumes while still achieving record profits. Munoz remarked that this strategy worked well until recent years when Chinese brands gained a foothold in the European market, prompting a reevaluation of pricing strategies by established manufacturers.

CFO Ignacio Mosquera of Spanish car part manufacturer Gestamp reported that the company was less impacted by declining car sales in Spain and Europe due to its geographic diversification. However, he stressed the need for more comprehensive measures to support the struggling sector, emphasizing the necessity of a public-private partnership amid what he described as “one of the most important industry overhauls in history.”

According to Mosquera, uncertainty in consumer demand leads individuals to prolong the lifespan of their vehicles, thereby restricting new car purchases. Additionally, Jose Portilla, head of the Spanish car part manufacturers’ association Sernauto, argued for increased state support to stimulate EV sales.

“If we’re able to boost the recharging infrastructure, EVs become more affordable, and the subsidies are given at the time of purchase instead of one-and-a-half or two years later. This will encourage the market much more and we’ll be able to redirect this situation,” Portilla concluded.