Published by Global Banking & Finance Review®
Posted on February 19, 2026
1 min readLast updated: April 3, 2026
Add as preferred source on GoogleRenault is evaluating building its next-gen compact EVs at the Palencia, Spain plant after reporting 2025 results. The shift would diversify output beyond France amid rising Chinese competition.
PARIS, Feb 19 (Reuters) - French automaker Renault Group is studying a plan to build its next generation of compact electric vehicles (EVs) at its plant in Palencia in Spain, CEO Francois Provost said on Thursday, after the company reported earnings for 2025.
The group, which has previously made all of its EVs at factories in France, is expanding its electric line-up but is facing tough competition from low-cost Chinese manufacturers in its core European markets.
(Reporting by Gilles Guillaume, writing Dominique Patton; Editing by Emelia Sithole-Matarise)
Renault is considering producing its next generation of compact electric vehicles at the Palencia, Spain plant. The evaluation was noted by CEO Francois Provost after the group reported 2025 results.
Shifting some EV output to Spain would diversify manufacturing beyond France and may improve cost competitiveness. It also positions Renault to respond to mounting pressure from low-cost Chinese brands.
The company has not disclosed a timeline. The plan is under study, and specific models, start dates, and investment details were not provided.
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