Global car manufacturers are constantly looking for ways to cut production costs, and for Chinese brands, high tariffs and shipping expenses make local production in Europe an increasingly attractive option.
Now, Spain has emerged as a potential new hub for Chinese automakers.
As reported by El Economista, two Chinese car manufacturers are exploring the possibility of setting up factories in Spain.
Factors such as the country’s skilled workforce, strong transport infrastructure, and government support have made it an appealing destination for expansion.
Valencia as a Strategic Location
Chinese Ambassador to Spain, Yao Jing, recently confirmed that two brands are interested in visiting Valencia, calling Spain “the country where China’s auto industry has the most interests.”
The ambassador has already held meetings with business leaders in the Valencia region, as well as its president, Carlos Mazón.
Spain’s access to renewable energy and its major seaports have been cited as additional advantages.
One option under consideration is acquiring or leasing Ford’s underutilized Almussafes plant, which currently produces only a single model.
Meanwhile, other Chinese brands, such as Omoda and MG, have already been evaluating production opportunities in Spain.
Potential Impact on Global Trade Relations
Spain’s increasing collaboration with Chinese companies could have diplomatic implications, especially as Donald Trump begins his second term as U.S. president.
Strengthening economic ties with China might shift Spain further from U.S. influence at a time when tensions between Washington and Beijing remain high.
While the identities of the two interested brands remain undisclosed, Spain’s role in the European auto industry appears to be expanding.
If these projects move forward, they could mark a significant shift in the country’s position as a key manufacturing hub for electric and conventional vehicles.
