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Supply Chain

Why Chinese Automakers Are Betting Big on Spain

By Eloise Delevingne May 17, 2026 2 mins read

Forget Germany. For Chinese carmakers looking to plant roots in Europe, Spain is quietly becoming the continent’s most attractive industrial landing pad.

Spain produced 2.27 million vehicles in 2025—86% of which were exported—making it one of Europe’s premier manufacturing bases. The country doesn’t carry a flagship legacy brand, and that’s arguably part of the appeal: it offers manufacturing muscle, deep port infrastructure, and a government hungry for new investment, without the political friction that shadows markets like Germany or France.

By the numbers:

  • EV and PHEV sales in Spain jumped 94.6% in 2025, reaching 226,000 units and capturing 19.6% of the market
  • BYD registered 25,552 vehicles in Spain last year—up 373.7% year-on-year—topping the plug-in segment outright
  • The MG ZS ranked third in overall sales with 23,731 units, its second consecutive year as Spain’s best-selling SUV
  • Chery is reviving the historic Ebro brand at Barcelona’s Zona Franca (the former Nissan plant), targeting 50,000 units/year by 2027 and 150,000 by 2029
  • CATL and Stellantis are building a 50 GWh battery gigafactory in Figueruelas with up to €4.1 billion in investment, slated to begin production by end of 2026
  • Spain’s Plan España Auto 2030 aims to mobilise €35–40 billion in public-private investment over the next five years

On the policy front: The Spanish government isn’t just dangling EV purchase subsidies—it’s playing industrial chess. Through its PERTE VEC programme, it’s actively using public funds to attract vehicle assembly lines, battery factories, and next-generation supply chain projects, making it one of the few markets where Chinese companies can land, build, and export all from one base.

Looking ahead: Spain is positioning itself as a full-stack manufacturing hub—batteries, vehicles, and supply chain—giving Chinese automakers a realistic, lower-friction path into the heart of the European market. The question is no longer whether Chinese brands belong in Europe. It’s whether Europe’s manufacturing map is being quietly redrawn around them.

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Author
Eloise Delevingne