Spain Plans €1.3 Billion Investment in Electric Vehicles

Spain is preparing to invest around €1.3 billion in its electric vehicle market and 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.

As Chinese brands expand rapidly, the Spanish government intends to strengthen support for the automotive sector. The plan is designed not only to protect jobs, but also to reinforce Spain’s position as Europe’s second-largest car manufacturer, according to 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 producers, which will invest €4.1 billion in a factory on Spanish soil.

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

How the investment will be allocated

Of the planned total, €400 million will be assigned to direct subsidies encouraging consumers to purchase electric vehicles. A further €580 million is planned through European programmes supporting industrial investment. The remaining €300 million will fund the installation of charging points in areas that are still underserved.

Spain’s 2035 electrified vehicle sales target

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

ACEA figures show that, from January to October, electrified vehicles already made up 60.6% of sales in Spain: 41.7% were conventional hybrids, 8.5% electric vehicles and 10.4% plug-in hybrids. The “Other” category, which includes LPG and fuel-cell vehicles, is not included.