Spain’s automotive industry saw profits plunge by 56 percent even as manufacturers poured record sums into new investments. Chinese brands and used cars are reshaping the market, while job losses and an aging vehicle fleet add to the pressure.
Factories in Spain spent more money than ever in 2025. The result? Profits for carmakers crashed. ANFAC’s latest report shows net profits dropped by 56 percent. The pain hit fast. Jobs and plants are now at risk, even as companies pour cash into upgrades.
José López-Tafall, ANFAC’s director general, called the 2025 investment record proof of the industry’s commitment. But the numbers show a tougher reality. Investment jumped 24 percent from the year before. Still, 3,246 jobs disappeared. Only 53,943 people now work for car brands in Spain. The drive to modernize hasn’t protected workers from the squeeze.
By August 2026, Chinese brands accounted for approximately 14.5% of new passenger car registrations in Spain, reflecting a rapid shift in market dynamics.
Look past the headline numbers. Spain’s car market is changing in ways few expected before COVID. Economist Pilar García de la Granja, speaking on 'Herrera en COPE' with Jorge Bustos, pointed out that car registrations have bounced back to pre-pandemic levels. But there’s a twist. The rebound is powered by new rivals. Chinese brands are moving in fast. Their cars are “much more affordable than traditional European or North American models.”
August sales data tells the story. Registrations rose 11.9 percent year-on-year. SEAT, Toyota, and Volkswagen still lead, but new names are climbing. BYD doubled its sales from last year. EBRO tripled its numbers. Buyers are changing their habits. Price matters more than ever. Chinese automakers are not a side note. They are changing the game.
Pilar García de la Granja points to three forces behind the shake-up. First, the Auto Más plan is pumping subsidies into electric and electrified car sales. Second, Chinese brands are beating old players on price. Third, used cars are flying off lots. “Selling like hotcakes,” she said. The average car in Spain is now 12 to 13 years old. That’s a sign. Renewal is slow, even with government help.
The Spanish government expanded support for electric vehicle purchases in 2026 through the Auto+ program, offering subsidies of up to 6,000 euros for passenger cars and 7,500 euros for vans to self-employed and micro-enterprises, and up to 4,500 and 5,000 euros respectively for other companies. This nationwide scheme is set to run until the end of 2030, with a second phase launched in October 2026.
These shifts match bigger changes in Spanish mobility policy. Local councils now set parking fees based on car size and emissions, as reported earlier. Rules are changing. Foreign competition is rising. Buyers want cheaper options. The industry is being forced to move fast. Old habits are breaking down.
Spain’s car sector faces a tough choice. Record spending shows companies want to stay in the fight. But profits are falling. New players are taking ground. The old playbook is failing. The future depends on whether bold investment can bring real growth. If not, traditional brands could get left behind.
