Spain announces $11 billion package to boost electric vehicle market

Spain will provide nearly 1.3 billion euros (HK$11.81 billion) to support its electric vehicle market and industry next year as part of a plan to lift the share of EVs produced in the country to 95 percent by 2035, Prime Minister Pedro Sanchez said on Wednesday.

In the first 10 months of 2025, the share of fully electric and plug-in hybrid vehicles made in Spain totalled around 10 percent, industry data show. Self-charging hybrids accounted for 26.7 percent.

Around 20 percent of vehicles across the EU last year were fully electric or plug-in hybrids.

Spain's plan includes 400 million euros in direct subsidies in 2026 for consumers to buy EVs and another 580 million euros under the country's EU-funded scheme supporting industrial investment.

It will also add 300 million euros to install charging points along roads still lacking coverage.

Spain is stepping up support for its automotive sector as Chinese EV brands like BYD rapidly expand, undercutting European rivals and exploiting the country's lack of a strong domestic carmaker.

The plan intends to help the domestic auto sector maintain jobs as production shifts to EVs and ensure Spain remains Europe's second-largest car manufacturer, Sanchez said.

Foreign battery projects such as Chinese company CATL's 4 billion euro plant with Stellantis are creating jobs in Spain, but without domestic backing the country risks losing know-how and market share.

Under the Spanish roadmap, sales of electrified models are targeted to reach 100 percent by 2035.

REUTERS