Edurne Martínez
Madrid
Sunday, 10 August 2025, 07:05
Sales of electric cars in Spain continue to rise, although the main barriers to entry remain the same as in recent years: few charging points, high prices, and insufficient range. These are the reasons cited by respondents in a recent report by the vehicle distribution association (Ganvam), which confirms that the demand for electric cars is increasing at the same pace as the supply. «Once you switch to an electric car, you don’t go back,» says Tania Puche, the communications director of the dealership association.
Demand is particularly increasing due to the drop in prices as the supply grows with the introduction of electric cars from China to Spain. June data confirms that for the first time, the average price of an electric vehicle has fallen below 31,000 euros, and in just one year, the decrease has been 12.2%. «The commercial strategies are clear,» says Puche, highlighting that Chinese brands have entered the market through pricing and that many local distributors are benefiting from Chinese companies seeking their help to enter the Spanish market.
In fact, Spain is positioning itself as the chosen gateway for several Chinese brands to begin their expansion into Europe. Faconauto explains that this is «no coincidence»: «Our geographical position is complemented by an industrial fabric with installed capacity, accumulated experience, and a responsive distribution network.» There is also another, harder-to-measure factor influencing this decision: the Spanish customer is showing greater openness to these new brands. «They do not start with prejudices, they value the product for what it offers in technology, price, and design, and this is encouraging many manufacturers to choose our country as the first step to build their European presence,» explains the dealership association.
Moreover, the barriers that Europe is imposing on the sale of Chinese cars, with tariffs ranging from 7.8% to 35% to protect the local industry, are increasing competitiveness among countries for these brands to set up plants in their territories, with the corresponding economic and employment benefits. In this scenario, Spain is a «logical option» because our country has a very competitive auxiliary company, qualified personnel, and a very robust infrastructure network. «We are very well positioned to attract investments if these industrial implementation plans are confirmed.»
Obstacles to the ‘Green’ Transition
Experts also warn that these tariffs imposed on Chinese brands protect the European industry but simultaneously complicate the ecological transition in Europe. By limiting the entry of low-cost electric vehicles from China, they are also hindering progress towards a more sustainable economy. Therefore, Faconauto also demands that Europe act «more swiftly» to implement the Automotive Sector Action Plan, presented by the European Commission in March, which aims to boost the industry.
How has China managed to position itself as the undisputed leader in electric vehicles? It is no coincidence. The Chinese government has been promoting electric mobility for over three decades, and since 2001 it has been part of its priority research projects. China considers this industry strategic firstly due to the country’s severe pollution problems, but also because it is determined to make itself a technological leader above the United States. Any industry where this ‘overtaking’ can be noticed is important to them. Moreover, in recent years, the country’s traditional growth engines—such as the real estate and manufacturing sectors—have been depleting.
If You Can’t Beat Them…
Due to all this, the stock of electric vehicles in China already surpassed that of the entire United States or Europe in 2014, and this gap has been increasing over time. Currently, nearly 70% of all electric vehicles operating worldwide are Chinese.
How is Spain adapting to this new playing field? The electric car is a challenge for the European automotive industry in general and the Spanish industry in particular, but it also represents an opportunity. Currently, it is the ‘green’ product most exported from Spain. Data from Fedea reveals that while in 2015 our country did not sell any electric vehicles abroad, by 2024 exports already account for 25% of all passenger cars. In a few years, Spain has positioned itself in sixth place in the global ranking of electric car exporters. Therefore, while the EU and China engage in a growing trade dispute, experts believe that Spain is «finding its place» thanks to its «ability to integrate the entire value chain» and is developing good strategies to attract investments from Chinese manufacturers within the continent. This would allow these companies to bypass customs duties, be closer to their main markets, take advantage of logistical benefits, and improve their perception among European consumers.
New Tax Havens Are in Rural Spain
110 kilometres from Madrid, a small municipality of just 17 square kilometres and only 26 registered drivers has accumulated 1,015 cars with zero-emission labels. Yes, 39 electric cars per person. It is not a mistake or a collector’s trend: it is a green tax haven.
In La Hiruela, there is no talk of low-emission zones or restrictions on polluting cars. There are no parking problems either, but rather a legal loophole that has turned this corner of the Madrid mountains into a magnet for electric cars that do not live there. And it is not the only one: the same happens in Las Rozas de Puerto Real, Patones, or Colmenar del Arroyo.
The answer to this statistical anomaly lies in the motor vehicle tax, known among the general population as the «numerito.» This tax, imposed in 1988, is municipal in nature and fills local coffers across the country with nearly 4 billion euros. In some places, it leaves more and in others less; it all depends on the fiscal pressure that the rulers want to exert on their citizens, although they are not always individuals.
The range for a medium-sized car of 11.99 fiscal horsepower—according to the European Motorists Association (AEA)—ranges from 34.08 euros in Santa Cruz de Tenerife to 87.93 in San Sebastián: a 158% difference between two provincial capitals.
The regulations only establish minimum bases, leaving room for councils to increase these fees, potentially charging up to double the minimum rate, as is the case in 12 of the 52 Spanish provincial capitals. The total amount depends on the vehicle’s power (horsepower), in the case of cars; and on the engine capacity, in the case of motorcycles; as well as the weight, number of seats, and other vehicle characteristics.
In addition, there are tax exemptions to attract phantom cars to the villages. Thus, three euros are paid annually in Las Rozas de Puerto Real and just over ten euros in Patones, two enclaves that have become the favourite garages of ‘renting’ companies.
Million-Dollar Savings
In fact, as indicated by the AEA, 255,000 rental car registrations were recorded in Spain in 2022. Of these, 170,000 (67%) were registered in nine small towns that, if their inhabitants are added up, barely reach 40,000 residents.
These striking figures are explained solely by tax reasons, turning these towns into a kind of tax haven for cars and, above all, for companies.
Sales of Chinese Models Accelerate the Spanish Market
In the streets of Spanish cities, it is increasingly common to see a greater variety of vehicle brands. Renault, Peugeot, Opel, Seat, Volkswagen, or Ford have given way to names like Tesla and others almost unknown to the national driver until now, such as MG or BYD among others.
The electrification of mobility has turned sales 180 degrees. Although, according to data from the Directorate General of Traffic, car purchases are still dominated by European manufacturers, with half of the pure electric vehicle sales registered in the first half of this year.
The leader in electric car sales in Spain is Tesla, Elon Musk’s firm. Spaniards particularly favour its Model 3, although in recent months they are opening up to more affordable options. The entry of Chinese cars into the Spanish market threatens this leadership.
Models from MG, BYD, or XPENG, among others, challenge Tesla’s dominance: the market share of these brands from the Asian giant has grown by 4.7 percentage points in a year.
This trend change is not unique to Spain. According to Jato Dynamics data, the new car market in Europe recorded a 4.4% drop in June, placing the accumulated decline at 0.3%. Therefore, the strong advance of Chinese manufacturers is noteworthy: their registrations soared by 91% during the first half, reaching 347,100 units. This figure allows them to achieve a market share of 5.1%, very close to the 5.2% held by Mercedes and surpassing Ford’s 3.8%.
BYD has been the main protagonist of this advance, with a 133% increase in its electric sales in June alone and a cumulative growth of 143% so far this year, with more than 41,000 units registered. The Chinese brand is already in twelfth place in the ranking of the best-selling electric car manufacturers in Europe, ahead of Ford and increasingly close to Cupra.
