Spanish car factories took a hard hit in August, with passenger-car production falling by 26.9%. The sharp drop extends a slide that has continued throughout the year.
From January to August, Spain’s car plants built 1.45 million vehicles, 1.8% fewer than in the same period last year. Exports have not helped: only 1.23 million vehicles have been shipped abroad so far in 2024. Both domestic output and international demand are down compared with previous years. In May 2026, Spanish factories assembled 211,642 vehicles, 4% fewer than in the same month a year earlier, continuing the downward trend.
Anfac, the national car makers’ association, is sticking to its message: the market is “developing as expected.” The group says the current downturn was already factored into industry forecasts. The official line sounds calm, but does little to ease concerns as the numbers keep falling. ANFAC says the absence of dedicated support programs since April 2024 has significantly held back production and demand in Spain's automotive sector. The association also warns that, at the current pace, Spain will not meet its zero-emission targets until 2075 unless incentives for electric vehicle purchases return and fleet renewal accelerates.
The car industry is a basic part of Spain’s economy, and policymakers and investors watch it closely. The latest figures follow months of trouble for the sector. Supply-chain problems and changing buyer habits have made matters harder. A recent report on new brands entering Spain shows how tough competition is. Car makers are under pressure to adapt quickly.
Anfac’s steady tone suggests some confidence in the industry’s ability to bounce back. But the numbers tell a different story. The ongoing drop in production and exports means the sector needs to rethink its strategy. How well car makers handle these changes, and whether the forecasts match reality, will shape how the industry weathers the downturn.
