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Chinese automakers expand into Spain for EV production and market growth

© B. Naumkin
Spain attracts Chinese automakers like Chery and Leapmotor, with BYD, Geely, and SAIC considering investments. Learn about competitive energy costs and government programs driving this growth.
Michael Powers, Editor

Spain is rapidly becoming one of Europe's top destinations for Chinese automakers. Two companies—Chery and Leapmotor—have already launched projects at local facilities. Now, according to Javier Pujol, president of Sernauto, two more major Chinese brands are eyeing the country. Their potential arrival was discussed at the recent Faconauto congress, where it was noted that Spain combines competitive energy costs, government programs, and growing infrastructure for electric vehicle production.

Meanwhile, Spain's automotive industry maintains its position as Europe's second-largest by production volume. Chery, through its partner EBRO, is already revamping the former Nissan factory in Barcelona, expanding its operations from kit assembly to a full production cycle including welding and painting. Leapmotor, for its part, will begin manufacturing models this year at the Stellantis plant in Figueruelas—a crucial step in expanding the brand's European presence.

Industry data suggests the most likely candidates among new investors are BYD, Geely, and SAIC. BYD is actively searching for a site for its third European plant after Hungary and Turkey. Geely is rumored to be considering utilizing Ford's excess capacity in Almussafes. SAIC, owner of the MG brand, faces pressure to accelerate production localization: sales of its electric models have been impacted by European import tariffs, and MG management has openly stated the need to quickly establish local assembly.

For Spain, this influx of Chinese projects means not only strengthening its industrial base but also boosting its importance within Europe's electrification strategy. PERTE subsidies and extensive green energy generation capacity create an attractive foundation for further growth. The market anticipates concrete announcements in the coming months that will solidify the new industrial landscape of Southern Europe's automotive sector.