Spain prepares €1.3 billion investment in electric vehicles

Spain is preparing to invest around €1.3 billion in its domestic market and electric vehicle industry over the coming year. Prime Minister Pedro Sánchez said the aim is for electric vehicles to account for 95% of those manufactured in the country by 2035.

In response to the rapid growth of Chinese brands, the Spanish government intends to strengthen support for the automotive sector. The plan is designed not only to protect jobs, but also to cement Spain’s standing as Europe’s second-largest car manufacturer (source: Reuters).

Chinese investment in Spain’s electric vehicle industry

Several Chinese manufacturers have announced projects in Spain in recent months. They include CATL, one of the world’s largest battery makers, which will invest €4.1 billion in a factory on Spanish soil.

Although such investments create jobs, experts warn that Spain could lose know-how and market share without consistent domestic support.

How the investment will be used

Of the planned total, €400 million will be allocated to direct subsidies aimed at encouraging consumers to buy electric vehicles. A further €580 million is earmarked through European programmes that support industrial investment. The remaining €300 million will fund the installation of charging points in areas where provision is still inadequate.

Electric vehicle sales targets for 2035

Through these measures, the Spanish government expects sales of electrified models to reach 100% by 2035, in line with the European Union’s (EU) energy-transition targets.

According to ACEA figures, electrified vehicles accounted for 60.6% of sales in Spain between January and October: 41.7% were conventional hybrids, 8.5% were electric vehicles and 10.4% were plug-in hybrids. The “Other” category, which includes LPG and fuel-cell vehicles, is not included.