Chery and SAIC have moved beyond shipping cars to Spain, as has Leapmotor: they’re now building them locally. These Chinese manufacturers are investing hundreds of millions of euros in Spanish factories, shifting the country from car importer to a basic European production site for electric vehicles. Recent industry reports show Spain among the EU’s basic destinations for Chinese automotive projects, with Chinese groups involved in six major Spanish automotive plants.
Consultant Tu Le puts it plainly: “Spain is becoming the new Detroit of the EU.” The numbers support his point. Chinese car exports reached 5.1 million in the first half of 2026, up 65.3% from the previous year; 2.3 million were new energy vehicles. The bigger shift, though, is production moving inside Europe, and Spain is leading that trend.
Chery and EV Motors relaunched the former Nissan plant in Barcelona under the Ebro brand in 2024, creating around 1,000 new jobs.
Industry sources
Why Spain? The country offers a strong industrial base and competitive costs, while the government is open to foreign investment. Chery’s joint venture with EBRO in Barcelona is set to produce up to 130,000 vehicles a year. The first Chery models are expected by late 2026 or early 2027. Leapmotor, working with Stellantis, plans to assemble the B10 in Zaragoza and is considering an electric Opel SUV, along with further expansion in Madrid. SAIC is preparing a €200 million industrial complex in Galicia, targeting 120,000 vehicles per year once its second phase is complete. Several sources say the Leapmotor project in Zaragoza will use CKD (completely knocked down) assembly rather than full manufacturing, affecting how much of the process takes place locally.
BYD, another major Chinese carmaker, chose Hungary over Spain for its €4 billion plant, partly to avoid EU tariffs on imported Chinese EVs. Some reports cite a 27% tariff, but there is no single rate. The decision reflects the broader impact of tariff pressure and the EU’s push to localize supply chains. Still, Spain’s three confirmed projects put it at the center of Europe’s changing automotive map. Gasgoo reports that Chinese groups Geely and SAIC, alongside BYD, Chery, and Leapmotor, registered nearly 792,000 vehicles in Europe in the first half of 2026, almost 11% of the market. BYD led with 174,100 registrations, followed by Chery and Leapmotor.
For European automakers, the warning signs are clear. Tu Le cites Chinese firms’ speed and battery technology as basic advantages, along with their digital know-how. “I don’t know of any traditional carmaker in the European Union that is expert in any of those basic factors,” he says. Europe doesn’t have its own Tesla, Rivian, or Lucid, and trails companies such as Waymo or Pony.AI in autonomous driving. If established European brands don’t adapt, Tu Le warns, they risk losing ground as American tech companies and Chinese manufacturers divide up the global market.
Around Zaragoza, a broad industrial cluster is taking shape. Battery facilities and chassis suppliers are joining Leapmotor assembly, with preparations underway for new Opel models at the same site. Stellantis and CATL have announced joint investments of approximately €4.1 billion in an LFP gigafactory, targeting capacity of up to 50 GWh and a launch by the end of 2026.
Industry reports
The impact on Spanish and Latin American startups is immediate. New factories are creating demand for B2B SaaS and supply chain solutions, as well as energy services tailored to the auto sector. The chance to become a supplier is open now, before procurement teams finalize their partners. For those working on batteries or components, and for teams developing remote software updates, Spain’s shift from importer to producer is a rare chance to get in early, one that may not come again soon.
As the industry changes, regulatory and market barriers are being tested. Some parking operators have started restricting electric vehicles, even though there’s no legal ban and EVs carry a lower fire risk than petrol or diesel cars, as reported earlier. The pace of change is pushing both industry and regulators to reconsider old assumptions.
For the first time, three Chinese brands, BYD, Geely, and Chery, have entered the global top 10 for sales. Toyota still leads, but the gap is closing. Spain is no longer just a destination for Chinese cars. It’s becoming the launchpad for their European ambitions. Those who move quickly to supply or partner with these new factories, or develop new products, will help shape the next phase of Europe’s auto industry. Others may lose ground as the center of gravity shifts south.
