Manuel Palma, a top Spanish car dealer, says Spain's rush to electric vehicles has left the industry wide open to Chinese rivals and pricing problems. His warning shows the risks facing a sector that once led in combustion engines.
"No tiene sentido que un eléctrico sea más caro que uno de combustión cuando su mecánica es más sencilla." With this blunt line, Manuel Palma, a veteran in Spain's car business, calls out a contradiction shaking the industry. Palma has spent forty years selling cars—over 150,000 of them. He is not just another voice. He has seen the ground shift under his own business.
For Palma, the problem is not just about what cars cost. He says Spain, once strong in making combustion engines, lost its lead by switching too fast to electric. "Nos hemos pegado un tiro en el pie. Éramos líderes en motores de combustión y hemos pasado al eléctrico," he says. He calls it a self-inflicted wound that has left Spanish factories and workers exposed.
In January–August 2026, Spanish factories produced 88,842 electric vehicles—a 28.8% year-on-year increase—yet total car output fell by 1.8% over the same period.
Palma says the real danger comes from China. "Los mejores son los chinos: tienen la tecnología, los ingenieros y las fábricas, sin nuestras cargas sociales. Competir así es casi imposible." He believes Chinese carmakers have the edge. They have lower costs and better technology. Spanish producers are left trying to catch up in a market they once led.
Electric cars are sold as cleaner, but Palma is not convinced their production is as green as promised. He points to electric cars catching fire and questions the real environmental cost of making batteries. The public is starting to notice these problems too.
Spain is not alone. Across Europe, electric and hybrid cars are changing the market. In Aragón, new registrations have jumped, as shown in a recent report. But Palma's criticism shows what this shift costs for countries that once thrived on combustion engines.
According to independent market data cited by leading Spanish business media, the share of electric vehicles in Spain's new car market reached about 10% in January–August 2026, with a notable surge to over 21% in the first half of September. However, experts highlight that the limited charging infrastructure remains a significant bottleneck for further growth.
Palma's warning comes as the car industry faces pressure from all sides: new rules, changing buyers, and tough global rivals. He says Spain gave up its lead in combustion engines and let in competitors who play by different rules. If Spanish makers cannot compete on price and new ideas, the country could end up watching from the sidelines in an industry it once helped shape.
