Spain is set to inject nearly R27.6 billion (US$1.52 billion) into its electric vehicle (EV) market and industry next year, as part of an ambitious strategy to boost the share of EVs produced domestically to 95% by 2035, Prime Minister Pedro Sánchez announced on Wednesday.
Industry figures reveal that in the first ten months of 2025, only 10% of vehicles manufactured in Spain were fully electric or plug-in hybrids, while self-charging hybrids accounted for 26.7%. Across the European Union, roughly 20% of vehicles sold last year fell into the fully electric or plug-in hybrid category.
The Spanish roadmap includes R8.5 billion (US$400 million) in direct subsidies for consumers purchasing EVs in 2026, alongside R12.3 billion (US$580 million) allocated through an EU-backed scheme to support industrial investment. Additionally, R6.4 billion (US$300 million) will be dedicated to expanding charging infrastructure along under-served road networks.
This surge in support comes as Chinese EV manufacturers such as BYD rapidly expand across Europe, undercutting local competitors and exploiting Spain’s lack of a dominant domestic car brand. Sánchez emphasised that the plan aims to safeguard jobs during the transition to EV production and ensure Spain retains its position as Europe’s second-largest car manufacturer.
Foreign investment is already flowing into Spain’s battery sector, with projects like Chinese firm CATL’s R85 billion (US$4 billion) plant in partnership with Stellantis creating employment opportunities. However, Sánchez warned that without strong domestic backing, Spain risks losing technological expertise and market share.
Under the new roadmap, Spain is targeting 100% electrified vehicle sales by 2035, marking a decisive shift towards sustainable mobility.
