Chinese carmakers and battery suppliers are treating the Iberian Peninsula as a main battleground for entering Europe, with a cluster of new investment commitments in Spain disclosed around the Paris Motor Show and reported in detail by Chinese state media this week.
Battery maker Gotion High-Tech plans to invest 1.1 billion euros for a stake in Volkswagen's battery plant in Valencia, while SAIC is preparing a production base in Galicia with planned investment of about 200 million euros. Chery, working with a Spanish partner, is pouring more than 150 million euros into the former Nissan plant in Barcelona and aims to lift annual capacity there to 50,000 vehicles by the end of 2026.
Leapmotor has become the first Chinese brand to build cars in Spain, starting production of its B10 at Stellantis's Zaragoza factory, and Geely's plan to take a 34 percent stake in Ford's Spanish operation has been approved, with two electric SUVs to be produced at the Valencia plant.
Spain has positioned itself as one of Europe's most open destinations for Chinese automotive investment, offering industrial capacity, logistics links to European markets and a policy climate that contrasts with the more guarded tone in some other EU capitals.
Analysts say localized production helps Chinese brands blunt tariff pressure, shorten delivery times and adapt models to European tastes, and expect further announcements as Europe's NEV market keeps expanding.
Source: Global Times citing Reuters, The New York Times and Spanish media, October 19, 2026.
