Spain commits billions to boost electric vehicle revolution

Spain will channel an impressive R27.6 billion into its electric vehicle (EV) sector next year, as part of a bold initiative to ensure that 95% of vehicles produced in the country are electric by 2035, Prime Minister Pedro Sánchez confirmed recently.

25 Spain EV

Current figures highlight the scale of the challenge: during the first ten months of 2025, only 10% of vehicles manufactured in Spain were fully electric or plug-in hybrids, while self-charging hybrids accounted for 26.7%. By comparison, across the European Union, around 20% of vehicles sold last year fell into the fully electric or plug-in hybrid category.

The Spanish government’s plan includes R8.5 billion in direct subsidies for consumers purchasing EVs in 2026, alongside R12.3 billion through an EU-backed programme to stimulate industrial investment. A further R6.4 billion will be allocated to expanding charging infrastructure along roads that remain underserved.

This decisive move comes as Chinese EV giants such as BYD gain ground in Europe, undercutting local manufacturers and exploiting Spain’s lack of a dominant domestic car brand. Sánchez stressed that the strategy is designed to protect jobs during the transition to EV production and to maintain Spain’s status as Europe’s second-largest car producer.

Foreign investment is already reshaping Spain’s battery industry, with projects like Chinese firm CATL’s R85 billion plant in partnership with Stellantis creating thousands of jobs. However, Sánchez cautioned that without robust domestic support, Spain risks losing technological expertise and market share.

Under the roadmap, Spain aims for 100% electrified vehicle sales by 2035, signalling a transformative shift towards sustainable transport.

More New Energy Vehicles stories

South Africa's EV market reaches its tipping point

South Africa's EV market reaches its tipping point

Zero Carbon Charge (CHARGE), which is building a national network of off grid, ultra-fast EV charging stations powered by renewable energy, has welcomed the latest new energy vehicle (NEV) sales figures, saying they confirm a trend it has tracked for several years.

  • 7 August 2026
New energy vehicle adoption continues to accelerate in SA

New energy vehicle adoption continues to accelerate in SA

South Africa's transition towards electrified mobility continued to gain momentum during June 2026, with 3 045 new energy vehicles (NEVs) sold, representing a 104.2% increase compared to the 1 491 units recorded during the corresponding period in 2025.

  • 4 August 2026