Chery and Ebro are investing more than 150 million euros to revamp the former Nissan plant in Barcelona. They plan to begin building up to 50,000 vehicles a year by the end of 2026. Industry reports say the project could create about 1,000 direct jobs and another 3,000 indirect ones. Chery has also established its European headquarters and R&D center in Barcelona, a sign of its long-term plan to build and innovate within the EU, as several leading auto publications have reported. The project could eventually reach a capacity of up to 130,000 vehicles a year, well above its initial targets.
Spain’s rise as a magnet for Chinese carmakers has clear drivers. Tu Le, founder of Sino Auto Insights and a well-known China auto analyst, calls Spain “the new Detroit of the EU.” The numbers support his view: in the first half of 2026, China was the second-biggest exporter of cars to Spain, just behind Germany.
Chinese investment is arriving at scale. CATL and Stellantis have announced plans to spend up to 4.1 billion euros on an LFP battery plant in Zaragoza, targeting a capacity of 50 GWh. Several independent sources say the project will make Spain a major player in Europe’s battery industry. BYD is also looking for sites in Spain for its next European plant. The company says it will need three assembly plants across Europe, plus a battery factory. Chinese carmakers are also being drawn to industrial centers such as Almussafes and Ferrol, along with Barcelona and Zaragoza, pointing to a wider shift in Spain’s automotive field.
Tu Le says the strategy has changed. Chinese carmakers are no longer just shipping cars from China; they want to build them in Europe and adapt them to local tastes and regulations. Local production can also help them avoid tariffs and shipping problems. This is already happening in Spain, where a strong industrial base and skilled workers make the country a real alternative to traditional auto centers.
But there are hurdles. Since October 2024, the EU has imposed additional duties of 7.8% to 35.3% on some Chinese-made electric cars. Recent policy briefs say Brussels is also considering new rules, including minimum prices and local investment requirements, to shape the conduct of Chinese exporters. Tu Le says European carmakers can’t rely on trade barriers alone. To keep up, they must compete on price and technology while delivering quality and reliability.
Spain’s own car industry is changing quickly. Factories built 2.27 million vehicles in 2025, but output fell by 1.7% in the first half of 2026. The basic reasons are the shift to electric models and weaker demand in Europe. Asian investment could help keep Spain’s factories running as the industry adopts new technologies and takes on a different industrial shape.
Rules are changing too. As reported earlier, Spain is making it easier to get licenses for automatic cars. This could speed up the switch to electric and hybrid vehicles, many of them made by Chinese brands.
Chinese auto giants are drawn to Spain by its manufacturing base and access to the EU market, as well as a government keen to attract foreign investment. As Chinese companies expand in Europe, Spain stands to gain jobs and investment, along with a bigger role in the continent’s car industry. The country’s place in a new industrial era will depend on how well it handles new technology and global competition.
