Spain’s ambitious electric car plan presents an opening for China, analysts say

Spain’s ambitious multi-billion-euro plan to become Europe’s leading player in the electric vehicle market presents a golden opportunity for Chinese car brands, which could be vital to the strategy’s success, according to analysts.

The Spain Auto 2030 Plan, presented by Madrid on Wednesday, seeks to mobilise government funding to provide consumer subsidies, support the construction of charging stations and help the Spanish car industry – which drives about 10 per cent of the country’s economic output – embrace the EV boom.

The government plans to spend €400 million (US$466 million) next year on direct subsidies for purchases of electric vehicles and another €300 million to help build more charging posts, according to Spanish Prime Minister Pedro Sanchez, who stressed the plan would focus on making EVs affordable for middle- and working-class households.

Harald Hendrikse, European head of autos research at Citi, said the plan would lead to a sharp jump in electric car sales in Spain, as the subsidies would hugely reduce prices. The cost of a €25,000 car could fall by €7,000 to €9,000 – a significant sum for consumers, he noted.

BYD, China’s top EV maker, sold more than 22,300 cars in Spain during the first 11 months of 2025, up 452 per cent compared with the same period last year, according to data from the Spanish dealership association Faconauto.