China’s vehicle output reached 34,530,738 in 2025, up 10.4% from the year before, while Spain’s fell 4.3% to 2,274,026 units, pushing it to ninth place. The International Organization of Motor Vehicle Manufacturers’ figures cover all types of motor vehicles, so the “one in three” share of global production includes trucks, buses and vans, not just passenger cars. China has now led production for 17 years.
Spain once drew automakers from Detroit, Paris and Wolfsburg. General Motors, Ford, Peugeot, Citroën and VW/Seat set up shop from Vigo to Valencia and Barcelona to Zaragoza. Top jobs at these Spanish plants were prized, with billions invested and tens of thousands of jobs on the line. The draw was skilled labor, lower costs than Germany or France, and a government eager for foreign investment.
Since November 2024, Chinese automaker Chery has been assembling vehicles at the former Nissan plant in Barcelona in partnership with Spain’s EV Motors. It is the first impressive example of Chinese car production on Spanish soil.
The numbers have turned. In 2000, Spain ranked sixth, building three million vehicles. By 2025, it had slipped to ninth, overtaken by China, India, South Korea, Mexico and Brazil. China’s climb has been relentless, rising from eighth place and two million vehicles in 2000 to the clear leader today.
Electrification sits basic to this shift. Chinese brands, with their electric and hybrid models, have captured nearly all of Europe’s market growth. In the EU, Chinese-made cars sold 419,000 units through August, while Tesla managed 58,000. Spain expects electric and plug-in hybrid sales to hit 20% by the end of 2026, still below the EU average of 32%.
From July to September 2026, Chinese automakers and battery companies announced projects in several Spanish regions totaling over 6 billion euros. Some projects are confirmed, while others are in advanced negotiations. The investments are expected to support factory utilization and local employment, while also increasing Spain’s dependence on Chinese platforms and technology, Economía 3 reports.
Car demand in Spain hasn’t dried up. Registrations in 2026 are on pace for 1.25 million units, the best result since 2019. Yet Spanish factories are turning out fewer cars, and the average vehicle age has crept up to 14.6 years. The network of suppliers and mechanics that once thrived around these plants now faces a shrinking pipeline.
Legacy automakers are scrambling. Ford’s Almussafes plant in Valencia saw production collapse from 343,794 vehicles in 2000 to just 98,591. Ford has brought in China’s Geely, which now owns 34% of the operation, betting the partnership will keep the plant alive. New electric SUV and crossover models are set to launch in Valencia from 2028 as part of the alliance, with Ford holding a 66% stake, Economía 3 reports. The industry mood has shifted: collaboration now trumps direct competition.
Automotive power has always shifted with technology and scale. The Ford T changed manufacturing in 1908. Volkswagen’s Beetle put Germany on the map in 1938. Toyota and other Japanese brands rewrote the rules in the late twentieth century. Now, China’s electric push is setting the pace.
Spain’s slide isn’t about weak demand or local mistakes. The ground has shifted as technology and scale move east. China now shapes the future of electric cars, whether battery-powered or hybrid. American, Japanese, Korean and European brands still fight for market share, but the center of gravity has moved.
Spain’s auto sector faces a stark choice. The country’s industrial backbone, once built on busy assembly lines, stands at a crossroads. Competing with China’s scale and innovation looks out of reach. For now, partnership is the only path Spanish carmakers can take as electrification redraws the map.
