Sales of cars remain depressed. | A. C.


The president of the Aseda association of car dealers, Andrés Vidal, says that new car sales in the Balearics are down 50% compared with 2019. They are therefore more or less the same as in 2020, when "normal" sales were only registered in January and February.

The situation in the Balearics contrasts with that for Spain in general: car sales are up 20% compared with 2020. Vidal attributes this to the level of dependence on tourism. The car sales market is also depressed in the Canaries for precisely the same reason as in the Balearics. Much of the economy revolves around tourism, and car sales reflect the degree of tourism activity. Job security and consumer confidence are especially important for committing to a sizeable purchase like a new car, and tourism hasn't recovered sufficiently to engender this confidence.

Vidal also notes that car manufacture has been reduced because of issues with the supply of microchips. There is less supply, while offers and discounts may not be available.