Volkswagen’s battery plant in Sagunto has changed direction. After its Korean partner withdrew, Gotion, a Chinese company with ties to VW, stepped in to complete the project. Production, once expected to begin this year, has been pushed back to at least 2027. The shift is part of a series of moves that have put Chinese firms at the center of Spain’s car industry.
Chinese brands already account for 20% of Spain’s car market and are aiming for 30%. Their industrial presence is growing even faster. As Europe’s second-largest car producer after Germany, Spain has become a basic target for Chinese investment. Industry sources such as Motor16 and La Vanguardia point to the country’s underused manufacturing capacity as a major draw for Chinese groups.
The Zaragoza gigafactory project with CATL involves an investment of up to 4.1 billion euros, making it one of the largest Chinese-Spanish industrial partnerships to date.
Several Spanish plants have shifted to Chinese ownership or joint ventures. Ebro, a Spanish brand, was the first to partner with China’s Saic, which owns Omoda, Jaecoo, and Lepas. Ebro now sells Chinese-designed cars under its own name, while Saic runs production at the former Nissan plant in Zona Franca. For now, that means assembling vehicles, but the approach is spreading.
Linares, once home to Santana, is following a similar route. Chinese groups Zhengzhou and Baic have joined as partners, though car production has not yet started. Finished Chinese vehicles currently arrive by ship, leaving Linares’s role mostly symbolic. Sector analysts at Motor16 note that this reflects a broader pattern: Chinese companies provide platforms and technology, while Spanish sites handle assembly and local adaptation.
Stellantis has made two major deals with Chinese partners. The company bought a stake in Leapmotor, which will oversee car production at Stellantis’s Villaverde plant. Meanwhile, the battery megafactory in Zaragoza is a joint venture with CATL, China’s top battery maker.
Chinese manufacturers are entering Spain through imports while also localizing battery production and vehicle assembly through joint ventures. This secures their positions in the value chain’s most strategic segments.
Motor16
Ford’s Almussafes plant is also moving into the Chinese sphere. Geely will lease the site to produce several models, some under its own brand and others for Ford. The deal could bring up to five new car models. OICA and La Vanguardia describe the arrangement as a way to preserve jobs and use the plant’s excess capacity.
MG, owned by Saic, is building an assembly plant in Ferrol to supply vehicles across Europe. Work has already started at the port to make room for the new facility.
China’s rapid expansion in Spain extends beyond factories. Spain offers cheap renewable energy and low labor costs, while its government is open to working with Beijing. These factors have made the country a natural entry point for Chinese automotive ambitions in Europe.
The impact of Chinese brands on Spain’s car market has been clear for some time, as shown by the arrival of the Geely E2, which challenged established European brands with aggressive pricing.
As Chinese companies expand their hold on Spanish automotive production, the industry is changing. The old model of European dominance is giving way to a new phase shaped by Chinese capital and technology, with Chinese strategy influencing the shift. For Spain, this means more than new jobs or investment: it marks a shift in who controls the future of its basic industrial sector. China has moved beyond competing in Spain’s car market and now plays a central role in shaping the country’s industrial future.
