Spain’s automotive industry is facing a major challenge as the transition to electric vehicles accelerates across Europe. Exports of cars manufactured in Spain dropped by 10.8% in the first half of 2025, largely due to reduced production as factories adapt to electric vehicle (EV) lines and weaker demand in European markets.
Currently, Spain’s production is still dominated by combustion engine vehicles, with only Stellantis and Mercedes-Benz manufacturing electric models. However, Volkswagen’s planned €10 billion investment in EV production and a new battery plant in Valencia is expected to transform Spain into a key hub for electric mobility in the coming years.
Despite falling sales in Europe, with France, Germany, and the UK all showing double-digit declines, Spain’s exports are gaining ground outside the EU. Turkey saw a 12.4% increase in imports of Spanish-made vehicles, marking it as a growing market for the industry.
The overall trade balance for the automotive sector remains positive at €5.68 billion, though this represents a 38.6% decline compared to 2024. Experts stress that adapting to electrification, boosting domestic demand, and attracting new investments are vital to ensuring that Spain’s automotive industry maintains its global relevance in the next decade.