Electric vehicles have become a common sight on the streets of Madrid, the Spanish capital. Chinese brands such as BYD and MG frequently drive around, offering a new green travel option for locals. Data from Spanish automotive industry organizations shows that in the first quarter of this year, registrations of pure electric and plug-in hybrid passenger vehicles in Spain increased by 58.4% year-on-year, demonstrating steady progress and significant results in the electrification transformation. Although the EU adjusted its 2035 zero-emission target for automobiles at the end of last year, Spain reiterated its commitment not to weaken its established emission reduction targets. It has also added €580 million in special funds to the "Spanish Automotive 2030 Plan," focusing on supporting the development of the electric vehicle and battery industries, and deepening cooperation with Chinese companies across the entire industry chain, striving to seize the initiative in the global automotive electrification revolution.

Seizing Opportunities – Accelerating the Pace of Automotive Industry Transformation

In early December 2025, the Spanish government officially launched the "Spanish Automotive 2030 Plan," aiming to seize the opportunities presented by the global automotive electrification transformation, consolidate its position as the EU's second-largest automobile producer, and enhance its industrial influence.

Spanish Energy Secretary of State José Dominguez recently stated that Spain's goal of having 5 million electric vehicles on the road by 2030 remains unchanged. He said that although this goal is challenging, public acceptance of electric vehicles often outpaces industry predictions, and Spain is confident in achieving and striving to exceed this target.

The automotive industry is a crucial pillar of Spain's manufacturing sector. Statistics from the Spanish Ministry of Industry, Trade and Tourism show that the automotive industry accounts for 10% of the country's GDP and 18% of its total exports. In the era of traditional gasoline-powered vehicles, core technologies, powertrain systems, and patent resources were mainly concentrated in Germany and France, with the Spanish automotive industry primarily responsible for manufacturing and assembly within the European automotive industry system. Currently, the global automotive industry is undergoing a transformation centered on batteries, electric drive systems, and software, disrupting the existing technological landscape. This presents Spain with a significant opportunity to break free from the constraints of traditional industries and achieve industrial breakthroughs.

Josep Recasens, President of the Spanish Association of Automobile and Truck Manufacturers, stated that the core advantage of Spain's national electrification strategy lies in the collaborative efforts of the government and industry. By centralizing subsidy resources scattered across local levels, it has improved the efficiency of fund utilization and accelerated the adoption of electric vehicles, providing certainty and confidence for the development of the entire automotive industry ecosystem. He believes that Spain was largely in a catch-up position during the era of traditional gasoline-powered vehicles, and the electrification transition provides an important track for Spain to upgrade its industry and establish its position in the European automotive industry.

In recent years, Spain has integrated public funds and social capital through mechanisms such as the "Electric and Connected Vehicle Strategy Project," focusing on the development of electric vehicles, batteries, and supporting infrastructure, aiming to build a complete electrification ecosystem. Jose Diess, a senior researcher at the Spanish Institute of Economics, Trade and Business Affairs, believes that the electrification industry is characterized by large upfront investments and stable long-term returns. The stability of policy signals is crucial; any policy reversals could severely impact emerging industries still in their development stage. This is also a key reason why Spain adheres to its established transformation path.

Collaborative Efforts – Strengthening the Foundation of the Electric Vehicle Industry Currently, Spain's automotive transformation towards electrification has achieved initial success and maintains a strong growth momentum. Data from the Spanish Association of Automobile and Truck Manufacturers shows that in 2025, the Spanish passenger car market saw steady growth, with new registrations of pure electric vehicles increasing by 75.7% year-on-year, and sales of plug-in hybrid electric vehicles increasing by 118.7% year-on-year. In 2025, the proportion of plug-in hybrid and pure electric vehicles in total vehicle production exceeded 12%, a significant increase compared to the previous year.

The "Spanish Automotive 2030 Plan" is a core initiative to promote electrification transformation, led by the Spanish Ministry of Industry, Trade and Tourism, focusing on collaborative efforts across the industry, consumer, and infrastructure sectors. On the industry side, Spain is promoting the localization of electric vehicle manufacturing, battery production, and key components through project guidance. For example, the Volkswagen Group's battery plant project in Valencia, launched with government strategic support, represents a total investment of over €7 billion. With a planned annual production capacity of approximately 40 gigawatt-hours, it is expected to begin production in 2026 and synergize with its vehicle assembly plants in Matorel and Pamplona, promoting the localization of the entire supply chain from batteries to complete vehicles.

On the consumer side, building upon existing incentive programs, Spain plans to invest €400 million in direct subsidies for electric vehicle purchases in 2026, along with an additional €300 million for charging station construction. By combining subsidies with financial instruments, the goal is to gradually reduce the final price of electric vehicles to below €25,000, lowering the barrier to car ownership for the public. Spanish Minister of Industry, Trade and Tourism, Jordi Herreu, stated that reducing the cost of purchasing a car is key to expanding the electric vehicle market and creating a virtuous cycle of "policy incentives—market expansion—industrial upgrading." According to the plan, by 2035, approximately 95% of new car production in Spain will be electric vehicles.

On the infrastructure side, Spain is systematically advancing its "National Charging Corridor Construction Plan." According to a statement from the Spanish Ministry of Transport and Sustainable Mobility, the plan involves an investment of approximately €300 million, focusing on building charging networks along highways and inter-regional transport corridors. This will improve the national charging backbone, effectively alleviating the long-standing range anxiety associated with electric vehicles in Southern Europe, providing a guarantee for inter-regional electric travel, and further unleashing market consumption potential.

Wayne Griffiths, former president of the Spanish Association of Automobile and Truck Manufacturers, stated that electrification is a systemic transformation for the industry and cannot be addressed by a single company alone. It requires collaboration and joint efforts from governments, businesses, and all parties in the industry chain.

Industry Cooperation – Promoting the Mutual Growth of Enterprises in Both Countries

In recent years, Spain's incentive policies for the development of the electric vehicle industry have complemented the advantages of Chinese electric vehicle brands, leading to increased popularity of Chinese electric vehicles among Spanish consumers. Data released by the Spanish Association of Automobile Dealers shows that by the end of 2025, the market share of Chinese car brands in Spain will rise to 10.2%, a significant increase from the previous year and nearly double the EU average.

In terms of industry cooperation, Chinese companies such as MG, BYD, Chery, and CATL are focusing on localized production, R&D, and supply chain layout. Particularly in the battery and key component sectors, landmark Sino-Spanish cooperation projects are progressing smoothly and achieving significant results. CATL and Stlantis Group's joint venture in Aragon, Spain, to build a lithium iron phosphate battery factory, held its groundbreaking ceremony in November 2025. The project has a planned annual capacity of 50 gigawatt-hours and is scheduled to officially commence production by the end of 2026. Upon completion, it will significantly enhance Spain's position in the European battery supply chain. Chery, in cooperation with Spain's Ebro, is upgrading its Barcelona production base using a "Chinese technology + local brand" model, effectively revitalizing local industrial assets and creating numerous jobs.

José María Marín, former president of the Spanish National Market and Competition Commission, stated that the Spanish automotive industry is accelerating its transformation from traditional manufacturing and assembly to "R&D + battery integration," and deep cooperation with Chinese companies provides strong support for this transformation.

Jordi Herreu stated that Chinese investment and cooperation in the Spanish automotive sector helps Spain achieve its industrial strategic autonomy and re-industrialization goals, and also reflects the new industrial opportunities brought about by electrification. The collaboration and complementary strengths of China and Spain not only provide strong impetus for the electrification transformation of the Spanish automotive industry but also open up new paths for the development of the European automotive industry. Chinese Ambassador to Spain Yao Jing stated that green transformation requires cooperation from all parties; no country or company can accomplish it alone. China and Spain are building an ecosystem of shared growth and mutual benefit through collaboration, mutual trust, and a shared vision. China is willing to share technology and opportunities with Spain to promote the common development of local communities and industries.