Finance
Spain announces $1.5 billion package to boost electric vehicle market
Published by Global Banking and Finance Review
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Spain will invest $1.5 billion to boost its electric vehicle market, aiming for 95% EV production by 2035, with subsidies and infrastructure improvements.
MADRID, Dec 3 (Reuters) - Spain will provide nearly 1.3 billion euros ($1.52 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% 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%, industry data show. Self-charging hybrids accounted for 26.7%.
Around 20% 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% by 2035.
($1 = 0.8572 euros)
(Reporting by Jesus Calero, editing by Andrei Khalip and Ed Osmond)
An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of gasoline or diesel. EVs can be fully electric or hybrid, combining an electric motor with a traditional internal combustion engine.
A plug-in hybrid vehicle (PHEV) combines a conventional internal combustion engine with an electric motor that can be recharged from an external power source, allowing for reduced fuel consumption and emissions.
An EU-funded scheme refers to financial programs supported by the European Union to promote various initiatives, including industrial investments and sustainable practices within member states.
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