Spain’s car market is growing in 2026. According to data from the manufacturers’ association ANFAC 647,711 vehicles were registered in the first half of the year, up 6.2 per cent on the same period a year earlier. By the end of July, industry-wide new registrations totalled around 750,000. Reports from trade associations and business media broadly agree on these figures.
One of the main drivers of growth is aggressively priced, often electrified models from Chinese manufacturers. They have recently gained market share in Spain . Their competitive advantage comes from comparatively low purchase prices, a broad range of hybrid and electric models, and an increasingly professional sales presence in Europe. For the domestic market, these offerings are stimulating demand and gradually rejuvenating the vehicle fleet.
At the same time, industry representatives and analysts urge caution. First, government subsidy programmes and tax incentives still support some of the demand; their expiry or reduction could dampen the market. Second, observers point to contrary trends in the home market of China: saturation and intense price competition there are putting pressure on margins, and several brands are losing market share. These developments could affect the companies’ investment plans, pricing and supply chain policies in Europe.
According to reports, some Chinese manufacturers are therefore considering a greater degree of localisation. For example, El Paísreports that the group SAIC is considering assembly in Ferrolto avoid possible import tariffs and shorten supply chains. Such plans have not been officially confirmed, but would be strategically significant for sites in Spain and for the companies’ position in the EU single market.
In the short term, Spain stands to benefit from higher sales and potential employment gains in supplier and logistics networks. In the medium to long term, however, the industry needs reliable framework conditions. ANFAC and Ganvam stress that expanding charging infrastructure and creating a predictable support framework are prerequisites for sustaining the current momentum in electric mobility. According to Cinco Días July saw strong growth, approaching pre-crisis levels; industry associations expect the year to end at around this level, subject to economic developments and international pricing and competition.
Editor: Daniel Mayer (Article created with AI assistance).