Manuel Palma, a veteran of Spain's car industry who has spent forty years selling more than 150,000 cars, says the shift to electric vehicles has left the country exposed to Chinese rivals. “It makes no sense for an electric car to cost more than a combustion-engine car when its mechanics are simpler.”
For Palma, the problem goes beyond car prices. He says Spain, once strong in making combustion engines, lost its lead by switching too quickly to electric vehicles. “We’ve shot ourselves in the foot. We were leaders in combustion engines and have moved to electric,” he says. He calls it a self-inflicted wound that has left Spanish factories and workers exposed. Production figures show a mixed picture: from January through August 2026, Spanish factories produced 88,842 electric vehicles, up 28.8% year on year, while total car output fell by 1.8% over the same period.
Palma says the real danger comes from China. “The Chinese are the best: they have the technology, the engineers and the factories, without our social costs. Competing on those terms is almost impossible.” He believes Chinese carmakers have the edge, with lower costs and better technology. Spanish producers are left trying to catch up in a market they once led.
Electric cars are marketed as cleaner, but Palma questions whether their production is as green as promised. He points to electric cars catching fire and raises questions about the environmental cost of making batteries. The public is starting to notice these problems too. Independent market data cited by leading Spanish business media put electric vehicles at about 10% of Spain's new car market from January through August 2026, with their share rising above 21% in the first half of September. Experts say limited charging infrastructure remains a impressive bottleneck to further growth.
Spain is not alone. Electric and hybrid cars are reshaping markets across Europe. In Aragón, new registrations have jumped, as shown in a recent report. Palma's criticism highlights what this shift costs countries that once thrived on combustion engines.
Palma's warning comes as the car industry faces pressure from new rules and changing buyer demand, alongside tough global competition. 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.
