Chinese Car Manufacturing in Spain
According to local news, existing Chinese car manufacturing facilities in Spain position the country as a “gateway” for Chinese cars entering Europe.
The rise of Chinese car manufacturers in the European Union isn’t a new trend—it’s been developing for quite some time. Reports suggest that Chinese brands represent a significant portion of the 27 new car brands available in Spain and other European markets. In fact, nearly 10% of all car sales in Europe are from Chinese brands.
Though the EU has implemented protective tariffs on Chinese electric vehicles (EVs) recently, these automakers can sidestep the tariffs by establishing production in Europe.
Several manufacturers, including the Chinese giant BYD, have formed agreements to open production plants across Europe, with Spain leading in investments from Beijing-based companies. There are currently five Chinese car manufacturers either operational or planning to set up shop in Spain.
A Spanish publication, Okay, Diario, noted that companies like Chery Automobile, Beijing Automobile, and Leap Motor have set up production in Spain, branding it a “heaven for the Chinese car industry” and a key point for accessing the European market.
Recently, Chinese automaker Geely announced a partnership with Ford to manufacture two electric SUV models at Ford’s facility in Valencia. During this announcement, Spanish Prime Minister Pedro Sánchez emphasized that this collaboration highlights Spain’s capability to attract foreign investments.
As El Economista pointed out, the choice to build in Spain is backed by its highly efficient logistics and competitive renewable energy prices, as mentioned by the Spanish Automobile and Truck Manufacturers Association.
The Chinese news agency Xinhua reported that the increasing popularity of Chinese cars in Spain is driven by rising consumer acceptance and demand for electric vehicles.
“MG, BYD, and Omoda&Jaecoo made up most of the registrations, but other brands like Geely and Changan are also gaining traction in Spain,” noted Xinhua.
In the first half of 2026, there were 75,024 new registrations of Chinese-brand cars in Spain, accounting for 12.3% of the market—a 50.9% increase from the previous year.
Interestingly, rather than constructing new plants, some Chinese firms have opted to repurpose existing sites. Chery, for instance, is set to operate in a former Nissan factory in collaboration with Barcelona’s local government, with plans to produce 200,000 vehicles by 2029.
As reported last week, the influx of Chinese vehicles has compelled European manufacturers to downscale, like Volkswagen, which may close several plants and lay off about 100,000 workers, roughly one-seventh of its total workforce.
While the EU has imposed tariffs on Chinese EVs, hybrid cars remain exempt, allowing Chinese firms to offload unsold inventory into the European market, which complicates the situation further for local manufacturers.
