Spain is becoming a major hub for Chinese carmakers in Europe, with substantial investments in Barcelona and Zaragoza aimed at boosting local production and battery capacity.

Overall, Spain’s manufacturing strength, EU market access, and pro-investment policies are driving a structural shift in Europe’s auto industry toward Chinese-led manufacturing in Spain.

The EBRO/Chery project could reach an eventual capacity of up to 130,000 vehicles per year, signaling a significant long-term impact.

Chery and Ebro are upgrading the Nissan plant in Barcelona to produce up to 50,000 vehicles annually by the end of 2026, creating about 1,000 direct and 3,000 indirect jobs, and Chery is establishing its European HQ and R&D center in Barcelona.

Spain’s automotive output fell 1.7% in the first half of 2026 as demand shifts to electric models, highlighting the importance of new investment to maintain production.

The EU has imposed duties on Chinese-made electric cars, with potential future rules including minimum prices and local investment requirements, forcing Chinese exporters to compete on price, technology, and quality.

BYD is seeking multiple sites in Spain for its next European plants, including three assembly plants and a battery factory across Europe.

CATL and Stellantis plan a 4.1 billion euro LFP battery plant in Zaragoza targeting 50 GWh capacity, reinforcing Spain’s role in Europe’s battery sector.

Spanish car manufacturing extends beyond Barcelona and Zaragoza to Almussafes and Ferrol, indicating a broader national shift in automotive manufacturing.

Industry analyst Tu Le calls Spain the “new Detroit of the EU,” highlighting its industrial base and skilled workforce as core advantages.

Policy changes in Spain, such as easier licensing for automatic cars, could accelerate the adoption of electric and hybrid vehicles, many of which are produced by Chinese brands.

In the first half of 2026, China became the second-largest exporter of cars to Spain, underscoring the growing Chinese presence in Europe.