Spain Accelerates Industrial Growth with Recovery Plan and Arrival of Chinese Automaker Changan
Spain bolsters its industrial reconstruction with a 100 billion euro Recovery Plan and welcomes Chinese automaker Changan's entry into its emerging electric vehicle market.
- • Spain will receive over 100 billion euros by 2026 under the Recovery Plan, with 25% already invested in strategic industries.
- • The 'España Crece' fund aims to extend industrial investments with 120 billion euros in public and private funds.
- • A new 40 million euro aid program supports small businesses transitioning to electric mobility.
- • Nearly 200,000 industrial jobs have been created since 2018, reflecting robust sector growth.
- • Changan plans its 2026 entry with electric vehicle models and aims for 80 dealership points in Spain by year-end.
Key details
Spain is advancing its industrial sector through a comprehensive Recovery Plan coupled with significant developments in the automotive industry, including the entry of Chinese car manufacturer Changan. President Pedro Sánchez emphasized at the VIII National Industry Congress in Bilbao that Spain will receive over 100 billion euros by 2026 as part of the Recovery Plan, with one-quarter already deployed in strategic projects across clean energy, automotive, gigafactories, and renewable hydrogen sectors.
Sánchez highlighted that industrial reconstruction will continue beyond 2026 via the newly announced 'España Crece' fund, seeking to mobilize 120 billion euros in public and private investment targeting energy transition, digitalization, AI, circular economy, and infrastructure. A second call for the Industrial Decarbonization PERTE will allocate 330 million euros, promoting longer project timelines of up to five years. The government also launched a 40 million euro aid program to support small businesses in adopting electric mobility.
Spain’s industrial momentum is reflected in the creation of nearly 200,000 industrial jobs since 2018, with half of these generated in the past year. Sánchez underlined the historic investment of about 24 billion euros in research and development aimed at boosting competitiveness and innovation while fostering European strategic autonomy.
Simultaneously, Changan plans to enter the Spanish automobile market in 2026 with bold ambitions: to produce five million vehicles globally by 2030, including 3.5 million new energy vehicles. Manuel Perez Casado, Changan’s head of sales in Spain, revealed plans for 32 dealerships initially, expanding to 80 by year-end. The company showcased electric models Deepal S05 and S07, offering ranges around 475-485 km and incorporating advanced technology with accessible pricing. This marks a significant arrival in Spain’s evolving automotive electronics sector.
These initiatives coincide with Spain’s industrial policy shift from reconversion to reconstruction, focusing on industrial resilience, climate transition as economic opportunity, and strategic growth. With coordinated investment and innovation, Spain is positioning itself as a strong player in Europe’s green and digital industrial future.
This article was translated and synthesized from Spanish sources, providing English-speaking readers with local perspectives.
