Spain intends to increase electric vehicle sales with a $1.5 billion incentives program.

Spain will allocate nearly €1.3 billion ($1.5 billion) next year to bolster its electric vehicle market and industry as part of a strategy to increase the production of EVs in the country to 95 percent by 2035, according to Prime Minister Pedro Sanchez.

The initiative includes €400 million in direct consumer subsidies for purchasing EVs in 2026, along with €580 million from the EU-funded program supporting industrial investments.

Additionally, €300 million will be dedicated to installing charging stations on roads that currently lack adequate coverage.

As Chinese EV brands like BYD expand rapidly and undercut European competitors, Spain is intensifying its support for its automotive industry, given the absence of a strong domestic automaker.

The plan aims to help retain jobs in the domestic auto sector during the shift to EV production and to ensure Spain remains the second-largest car manufacturer in Europe, as stated by Sanchez.

Foreign battery initiatives, including a €4 billion factory by the Chinese company CATL with Stellantis, are generating jobs in Spain; however, without domestic support, the country risks losing essential expertise and market presence.

According to the Spanish roadmap, the goal is to achieve 100 percent sales of electrified vehicles by 2035.

Data from the industry indicates that in the first ten months, the share of fully electric and plug-in hybrid vehicles produced in Spain was about 10 percent, while full hybrids made up 26.7 percent.

Last year, approximately 20 percent of vehicles in the EU were fully electric or plug-in hybrids.