Spain is introducing new incentives for electric vehicle adoption as part of its master plan for the automotive industry in the upcoming years.
The Government, led by Pedro Sánchez, has announced on Wednesday the Plan Auto 2030, which was built after conversations between the industry and the Ministerio de Industria y Turismo.
The Auto Plan 2030 includes 25 measures to help the sector transition to electric vehicles and maintain employment levels in the coming years, as it plans for electrified vehicles to represent 95% of produced vehicles in the country by 2035.
Additionally, Spain aims for all vehicle sales in a decade to be either fully electric or hybrid models.
According to the program, the goal of the industry and the government is to invest around €30 billion (nearly $35 billion) across the entire automotive value chain over the next five years.
The Government is set to contribute approximately 16% of the funds — about €1.3 billion.
Of those, €400 million will be offered in direct subsidies for customers looking to purchase an electric vehicle, while another €300 million will be invested in the expansion of the charging network across the country.
The government announced that €580 million will come from the European Union as support for industrial investment.
EV Production
According to Anfac (Asociación Española de Fabricantes de Automóviles y Camiones), Spain is the second largest auto producer in Europe, after Germany, and the ninth globally.
In the first ten months of 2025, the share of full-electric and plug-in hybrid vehicles made in Spain was about 10%, while hybrids accounted for 26.7%.
With the new program, Spain aims to attract new investment in car manufacturing, battery production, and the refining of critical materials such as lithium, while helping the domestic auto sector maintain jobs.
Several Chinese companies have begun setting up local production in the country, several of them choosing the location citing low manufacturing and labor costs and clean energy network.
It is the case of CATL, which is building a €4 billion plant in Figuerelas, a town of 1,300 people in northern Spain.
The factory is expected to start production in late 2026, supplying batteries to Stellantis’ car plants, including one located right next to the site.
Two months ago, Reuters reported that BYD is also considering Spain for its third European factory (after Hungary and Turkey).
A BYD Portugal executive recently revealed that Spain’s neighbor was also under consideration, as Chinese battery maker CALB began construction of its lithium factory in Sines.
EV Adoption
Data from the Anfac published on Monday showed that in a total of 94,124 new vehicles sold in November, 9,316 were fully electric and 11,999 were plug-in hybrids and extended-range vehicles.
Combined, these vehicles represented 22.6% of the market. Diesel and petrol vehicles accounted for 26.7%.
In November, the best-selling brands in the segment were BYD, which produces both fully electric vehicles and plug-in hybrids, with 1,991 units, and Tesla, which sold 1,524 EVs.
The top 10 models registered in the country included Tesla‘s Model 3 and Model Y, BYD‘s Dolphin Surf, Atto 2 (the BEV version, as the PHEV is only expected to begin deliveries next year), Seal and Atto 3, among others.
