Spanish Car Plants Under Pressure: Who Will Survive in the New Investment Race. In 2025, car production in Spain declined, leaving the future of several factories uncertain. Some companies are guaranteeing new investments, while others are searching for ways to survive amid major changes in the industry.
In 2025, Spanish car factories produced 2,274,026 vehicles — 4.3% less than the year before. The decline is due to reduced demand in Europe and a major restructuring of production for new electric models. Despite this, Spain remains the second-largest car producer in Europe and is among the world’s top ten, competing with Brazil.
Strong players
Among the factories with the most stable outlook, Stellantis plants stand out. The Vigo plant remains the largest in the country, assembling nearly half a million vehicles a year, including commercial models such as the Citroën Berlingo, Opel Combo, and Fiat Dobló. In the coming years, the site will receive new projects on the STLA Small platform.
Stellantis’ plant in Figueruelas (Zaragoza) produces the Opel Corsa, Peugeot 208, and Lancia Ypsilon. The group has already confirmed the launch of the Leapmotor electric model and the renewal of Opel and Peugeot lines until 2028. Even the Madrid plant, traditionally considered vulnerable, has gained new opportunities: it assembles the Citroën C4 and Citroën C4 X, with new Leapmotor models expected in the future.
Volkswagen has also strengthened its position in Spain. In Martorell (Barcelona), they manufacture the Seat Ibiza, Arona, León, Cupra León, and Formentor, and now also the Cupra Raval and VW ID. Polo. In Navarra (Landaben), Volkswagen T-Cross, Taigo, Polo are assembled, with preparations underway to produce the Skoda Epiq and Volkswagen ID. Cross. According to russpain.com, these factories have enough orders to stay busy for at least several years ahead.
Renault maintains stability at its facilities in Valladolid and Palencia. Valladolid produces the Captur and Symbioz, while Palencia produces the Austral, Espace, and Rafale. The company has already announced the launch of three new models, the introduction of the RGEV Medium 2.0 electric platform, and two new hybrid projects for Valladolid.
Risk zones
Not all factories can count on long-term support. The Ford plant in Almussafes (Valencia) has been balancing on the edge for several years: currently, it only produces the Ford Kuga. A new multi-energy platform is expected to arrive by 2027, but no details have been disclosed yet. It is only known that Ford Bronco production will move here, and part of the site has already been purchased by China's Geely to produce its own models and bypass European tariffs.
Chinese brands are increasingly expanding into Spain. MG plans to build a factory in Galicia, and Chery has already started operations in Barcelona, where for now it is only finalizing vehicles brought from China. By the end of summer, pilot production of Omoda and Jaecoo models is expected to launch.
Prospects and challenges
The transition to electric vehicles requires significant investment from factories in new platforms and technologies. Not all manufacturers are willing to modernize all of their sites, which puts the future of certain facilities at risk. At the same time, the interest of Chinese companies in the Spanish market may shift the balance of power and give a chance to regions where European groups are reducing their activity.
Judging by the current situation, most large factories in Spain remain stable for now, but for some enterprises, the survival question remains. The final map of car production in the country will depend on how quickly and flexibly companies can adapt to new market requirements.
