Lorraine Williamson
Spain is emerging as one of China’s most important gateways to Europe’s car market, as Chinese manufacturers seek locations to build electric vehicles within the European Union.
The shift could bring thousands of industrial jobs and major investment to Spanish regions. Yet it also raises a difficult question for Europe: can Chinese capital help revive the continent’s car industry without deepening dependence on Chinese technology?
El País reported on Monday that Chinese carmakers, including SAIC, Changan, Leapmotor and Geely, are exploring or negotiating production projects across Spain, from Galicia and Aragón to Madrid and Valencia. The trend comes as Europe’s traditional car industry faces higher costs, weaker sales and pressure from the shift to electric vehicles.
Why Spain is attractive to Chinese carmakers
Spain already has one of Europe’s strongest automotive bases. It has experienced suppliers, major ports, rail links, lower production costs than northern Europe and growing access to renewable energy.
For Chinese brands, those advantages now matter even more.
The European Union has imposed additional duties on Chinese-made electric vehicles since 2024. Producing inside the EU can reduce exposure to those tariffs and make Chinese brands feel more local to European buyers. Reuters reported in February that Brussels allows some carmakers to negotiate exemptions for individual models, but local production remains a powerful strategic option.
Stellantis and CATL to build major EV battery factory in Spain
Galicia hopes for an MG factory
One of the most closely watched projects involves SAIC Motor, the Chinese state-owned group behind MG.
Reuters reported in April that SAIC’s MG unit was considering Spain for a European electric vehicle factory, although no final decision had been confirmed at the time.
Galicia is now pushing hard to attract the investment. Cadena SER reported on Monday that the former Einsa Print site in As Pontes is being discussed as a possible location. The regional economy minister, María Jesús Lorenzana, said the project would involve more than simple assembly, though details on investment, jobs and location have not yet been confirmed.
For As Pontes, the symbolism would be significant. The town has been hit by the decline of older industries, including energy and manufacturing. A new EV plant would turn a place associated with industrial loss into part of Europe’s green mobility chain.
Zaragoza and Madrid enter the EV race
Spain’s appeal is not limited to Galicia.
Stellantis and China’s Leapmotor are expanding their electric vehicle partnership in Europe. Reuters reported last week that the companies are considering assigning new Leapmotor models to Stellantis’ Madrid plant from 2028, while production in Spain would help the Chinese brand avoid EU tariffs on cars made in China.
Aragón is also becoming a central point in the battery and EV map. Stellantis and CATL announced a €4.1 billion battery factory in Zaragoza in 2024, with production expected to begin by the end of 2026. The plant could reach 50 gigawatt hours of capacity and supply batteries for affordable small and medium-sized electric cars.
Chinese luxury carmaker Hongqi eyes Spain for European production
Valencia watches Geely and Ford talks
In Valencia, attention is focused on Ford’s Almussafes plant.
Reuters reported last week that Chinese carmaker Geely had acquired part of Ford’s vehicle assembly facilities in Almussafes, according to Spanish specialist outlet La Tribuna de Automoción. Ford described the report as speculative and declined to comment.
The plant has faced uncertainty in recent years, making any new production agreement closely watched by workers, unions and regional authorities.
If Chinese brands use existing Spanish factories, the model could help preserve industrial sites that might otherwise lose volume during Europe’s difficult electric transition.
Barcelona already shows the pattern
The Barcelona area offers another example of how the map is changing.
Reuters reported this month that Spanish carmaker EBRO aims to double production this year at the former Nissan plant in Barcelona. Chery, which has a 40% stake in a joint venture with EBRO, is expected to begin producing vehicles there by late 2026 or early 2027.
That project shows why Spain is attractive. Existing factories, skilled labour and political support can help new entrants move faster than building everything from scratch.
Jobs, investment — and strategic unease
For Spain, the economic upside is clear. New factories can protect jobs, revive industrial towns and strengthen the country’s role in Europe’s electric vehicle supply chain.
But there is a wider strategic debate.
European officials want to defend domestic manufacturers from heavily supported Chinese competition. At the same time, countries including Spain are welcoming Chinese investment because it brings jobs, production and new technology.
That creates an uncomfortable balance. Europe wants to compete with China, but parts of its car transition may increasingly depend on Chinese companies, batteries and capital.
Spain’s car industry enters a new phase
Spain is not replacing Germany as Europe’s car capital overnight. But the centre of gravity is shifting.
Chinese carmakers need a European manufacturing base. Spain has factories, ports, workers, renewable energy and regions eager for investment.
The result could reshape Spain’s industrial future. The question is whether the country becomes a true electric vehicle hub — or simply the place where Chinese cars are assembled for Europe.