Spain will allocate close to 1.3 billion euros next year to bolster its electric vehicle (EV) market and manufacturing base, Prime Minister Pedro Sánchez announced on Wednesday, outlining a strategy aimed at increasing the share of EVs built domestically to 95% by 2035.
Between January and October 2025, fully electric and plug-in hybrid models represented roughly 10% of Spanish vehicle production, according to industry figures. A further 26.7% were self-charging hybrids.
Across the European Union as a whole last year, about one in five vehicles sold was either fully electric or a plug-in hybrid.
Madrid’s new programme includes 400 million euros in consumer subsidies in 2026 to encourage EV purchases, plus an additional 580 million euros from Spain’s EU-backed industrial investment plan. Another 300 million euros will be dedicated to building charging infrastructure in areas of the road network where coverage remains sparse.
The government is increasing its support for the automotive industry as Chinese manufacturers such as BYD rapidly grow their presence in Europe, often offering lower-priced vehicles and taking advantage of Spain’s lack of a dominant national carmaker.
Sánchez said the initiative is designed to safeguard employment as factories transition to electric production and to ensure Spain retains its position as the EU’s second-largest vehicle-producing country.
Spain is already attracting major foreign battery investments — including CATL’s 4-billion-euro project with Stellantis — but officials warn that without stronger domestic backing, the country could forfeit valuable expertise and competitiveness. ALSO READ: Stellantis & Chinese firm CATL to invest €4.1bn in battery plant in Zaragoza, Spain.
Under the national roadmap, all new car sales in Spain are expected to be electrified by 2035.
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España elige estar a la vanguardia de la electrificación del automóvil.
— Pedro Sánchez (@sanchezcastejon) December 3, 2025
Con el Plan Auto que hoy presentamos, el Gobierno apoya la oferta y la demanda para que se encuentren en un nuevo punto de equilibrio: el coche eléctrico, económico y español. pic.twitter.com/cCLKnQ2hJP
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